I spent several hours listening to
the hearing conducted on Wednesday, February 4, 2009 by the
House Financial Services Subcommittee charged with
investigating the Bernard Madoff Fraud Allegations and
Financial Markets Regulation.
The first testimony was given
by Harry Markopolis, Independent Financial Fraud Investigator
and Analyst, who testified that beginning in 2001 and on a
number of other occasions in the years following he presented
the SEC with detailed information, in effect handing them the
Madoff fraud case on a silver platter. His testimony was
specific and so credible that no one on the committee,
Democrat or Republican, had anything but praise for his work.
That praise was justified. It was quite clear to
all, that Madoff could have and should have been stopped in
his tracks in early 2001. Here's the link to Markopolis'
Following his testimony, a panel
consisting of various divisions of the SEC, including at least one
SEC attorney and other regulatory agency
representatives, was assembled to offer testimony in their own
defense as to what happened to allow the Madoff fraud to
continue for so long.
The panel was derided and
ridiculed with little mercy by the oversight committee when
panel members failed to offer any useful information or credible
defense, claiming that legal investigations now ongoing precluded them
from speaking freely.
Subcommittee members made it
clear how disgusted and incredulous they were that it was
possible for the SEC to be so incompetent, even to the point of
malfeasance, for allowing Madoff to continue his fraud for all
those years when the evidence was handed to them on a silver
platter several times over a number of years.
Madoff finally ended the scam himself
when he came forward to admit his crimes. Prior to
that, he apparently was just too
big a fish to investigate or challenge by the people who had
To the members of the
Committee, I offer you the following links which I hope will help you understand how it is possible
for people who are charged with oversight responsibility, (even in
the face of their solemn oath and duty), to look the other way when they are
confronted with the fraud, lies, and deceit of people who are considered so powerful that they are above the law or beyond
the wheels of justice, even when the case against the criminals
are handed to them on a silver
platter. These links, with all due respect, ought to be
invaluable to you.