The Worlds Largest Hedge Fund is a Fraud. (report to the SEC, concerning Madoff, November 7, 2005)

scribd.com ^ | November 7, 2005 | Mr. Markopolos

[FoxPro]

Is the author of this complaint any relation to Madoff. They appear to have the same last name.

[Batman11]

His last name is Markopolos. He definitely is not a Madoff!

[rvoitier]

Deep Capture

[the invisib1e hand]

interesting find. how did you uncover it?

[FoxPro]

At the top it says “Markopolos Madoff Complaint”.

So stupid me, I thought it was written by somebody named “Markopolos Madoff”.

I feel like an idiot now........

[wastedyears]

Madoff with a lotta money.

[FoxPro]

It was linked by the second discussion post at the bottom of this article:

http://www.nydailynews.com/money/2008/12/25/2008-12-25_bernie_madoff_should_rot_with_rats_victi.html

This whole thing is just fascinating.

Can we just assume that nobody at the SEC read this?

[the invisib1e hand]

that's

fascinating. If true (I've only scanned it and have no credibility sense on it), it might explain Cramer's adoption of the "financial terrorism" idea covered on my favorite blog.

[the invisib1e hand]

I feel like an idiot now........

Good, because when you make an error on Wall Street, you're supposed to feel like an idiot. Assume the kicked-dog pose.

[the invisib1e hand]

The SEC was married to Bernie’s neice, I think.

[HereInTheHeartland]

The Wall Street Journal has written quite bit in the past week about Mr Markopolos.
Yes he was on to Madoff.

[Batman11]

Thanks for posting this. I read about Markopolos in the WSJ last week. You are not an idiot, but a lot of the people that are involved in this case are!

[the invisib1e hand]

Do you happen to have the WSJ link?

[FoxPro]

Ok, well it says “Markopolos Madoff Complaint” at the very top.

So I thought that was very strange......

So why didnt they use Mr. Markopolos’s first name? We dont even know if this person is a guy or gal.

That is confusing.

[Batman11]

Not sure about what we are allowed to link, so mods please correct me if needed. Here is the WSJ link I read:

http://online.wsj.com/documents/Madoff_SECdocs_20081217.pdf

[the invisib1e hand]

This was impressive. Markopolous really did his homework. One clear implication from his analysis is that the FOF's that invested with BM had to have been complicit with him in raising cap. He fabricated the returns, and they "private labelled" those returns to pull in all that money. They weren't stupid; it's clear from this report that anyone and everyone in the industry who was familiar with BM understood it to be a fraud.

The guy who just killed himself probably wasn't a victim of Madoff as much as a a co-conspirator.

And finally, it seems that Madoff himself was very familiar with this report, as he seems to have quoted from it in his confession.

[the invisib1e hand]

So why didnt they use Mr. Markopolos’s first name? We dont even know if this person is a guy or gal.

Well, on page on of the report, he insisted upon anonymity.

You really are an idiot. ;)

[the invisib1e hand]

ty.

[FoxPro]

You really are an idiot. ;)

My ex wife used to tell me that all the time!

[Enchante]

There is also a fascinating account by a business reporter (formerly with Barrons) who apparently was onto Madoff quite independently of Markopoulos (unless he was the one who tipped her off). She says some fund manager gave her a trip in the spring of 2001 that Madoff’s numbers did not add up, and she interviewed over 100 people and wrote some kind of expose back then, but the dolts at the SEC apparently could not remove their craniums from their rectums..... or they were actively covering for Madoff???

Here’s the link - I tried to post an excerpt from the much more recent article in Portfolio.com but apparently we cannot even post an excerpt from that site on FR, so be sure to go to the site and read this fascinating account of how Madoff MIGHT have been stopped cold in 2001:

Innocence Lost

http://www.portfolio.com/news-markets/top-5/2008/12/17/madoff-barrons

by Erin Arvedlund Dec 17 2008