The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.... from their web page.
Harry Markopolos would love to fire most of the SEC staff for ignoring Bernie Madoff's fraud. This brave soul repeatedly warned the FBI, the SEC and other regulatory agencies that Madoff was stealing billions with his schemes and Markopolos was repeatedly ignored.
Either it's a case of woeful incompetence or those agencies were part of the scheme. Was the fact that much of that loot Madoff stole--rumored to be close to 100 BILLION-- wound up in Israel play a part in those agencies acting dumb, blind and stupid?
And why did the 'paper of record', the NYT and the Wall Street Journal ignore Mr. Markopolos?
'No One Would Listen' to Harry MarkopolosMarkopolos: I gift wrapped and delivered the largest Ponzi scheme in history to the SEC
Markopolos's book describes in detail his contacts with the late John Wilke of The Wall Street Journal, which fizzled out after a year. Forbes and The New York Times also were contacted and did nothing.
The question I wrestled with for a long time was: Why? When the newspaper that existed only to cover the financial world was handed a detailed explanation of the biggest fraud in Wall Street history, why wouldn't someone at least conduct a cursory investigation? Three phone calls, two phone calls, that's all it would have taken to verify that I wasn't some kind of nut, that the accusations I was making were based on fact. A half hour, that's all.
Harry Markopolos, an independent financial fraud investigator for institutional investors and others seeking forensic accounting expertise, as well as a Chartered Financial Analyst and Certified Fraud Examiner, testifies.
SEC Official Claims Executive Privilege In Refusing to Answer Madoff Questions