When Harry Markopolos began his career in the securities industry, he applied his mathematical skills to the design of investment products. In particular, his bosses wanted him to create investment instruments that competed with those offered by financier Bernie Madoff. When Markopolos found that Madoff’s results were impossible to match, he suspected that Madoff was running a Ponzi scheme – not investing money, but paying each investor with cash from other investors. His suspicion led to an investigative odyssey. Markopolos and his team uncovered not only the largest financial fraud in history, but also a dangerously dysfunctional U.S. regulatory system. In this book, Markopolos recounts his frustrating, thwarted efforts to warn the Securities and Exchange Commission (SEC) about the threat Madoff posed to unwary investors. The SEC failed to respond to his detailed written evidence, though Markopolos submitted it five times, starting in 2000, long before Madoff finally confessed in 2008 (he is now serving 150 years in jail). getAbstract recommends this engrossing book to readers who want to learn more about this epic scandal and its implications for financial industry regulation.
In this summary, you will learn
- How Harry Markopolos and his investigative team discovered that financier Bernard Madoff was defrauding investors
- How Madoff established and expanded history’s largest financial fraud
- How the Securities and Exchange Commission’s lax response to repeated warnings about Madoff sustained his illegal operations
About the Author
Harry Markopolos is a financial fraud investigator and former securities industry executive.
Comment on this summary
Contained in Knowledge Pack:
Knowledge PackDetecting FraudFool me once, shame on you. Fool me twice, shame on me.
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