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Letter to SEC in 2005: “Madoff is running a Ponzi scheme”

The Wall Street Journal published the original submission to the SEC by analyst Harry Markopolos in 2005, following his claims of 1999 that Bernie Madoff was running a Ponzi scheme.

A few highlights:

"I am the original source for the information presented herein having first
presented my rationale, both verbally and in writing, to the SEC's Boston office
in May, 1999 …

"I am a derivatives
expert and have traded or assisted in the trading of several billion $US in
options strategies for hedge funds and institutional clients. I have experience
managing split strike conversion products both using index options and using
individual stock options, both with and without index puts. Very few people in
the world have the mathematical background needed to manage these types of
products but I am one of them …

"Madoff Securities is the
world's largest Ponzi Scheme. In this case there is no SEC reward payment due
the whistle-blower so basically I'm turning this case in because it's the right
thing to do. Far better that the SEC is proactive in shutting down a Ponzi
Scheme of this size rather than reactive."

Harry the hero?

SEC in the dock?

The day of reckoning cometh.

You can download the full submission (1.5 MB).

About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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