Mr. Markopolos said he and his team were worried for their safety because of Mr. Madoff's powerful position and status .... that led them to submit some documents anonymously.
VERY instructive is Madoff "investors" whining that they have been screwed-over.......yet they made a lot of money over the years.......and took out a heckava lot more than they put in. Clearly, some of the "pigeons" were in on the scam.
Some investors gave Madoff AN ASTOUNDING $100-500 million to "invest" for years and years. Some investors even wrote PERSONAL checks to Madoff's subrosa spinoff vehicle that was not listed on the Securities Exchange (tax evasion modus?).
NOT EVEN ONE INVESTOR blew the whistle on Madoff.....all accusations of fraud were made by objective analysts outside the scam operation. And when fraud raised it's ugly head, Madoff and his investors scared off accusers. As Laura Goldman wrote---whistle-blowers were accused of being anti-Semitic---a very scary charge.
The now-famous 2005 Markopolis Report to the SEC raised fraud issues and yet the SEC "turned a blind eye."
It must be considered that the SEC backed-off investigating Madoff NOT because they are incompetent, but because SEC investigators risked losing their jobs if they zeroed in on Madoff. CAREER KILLER In the ranks of L/E, it is NOT advisable to imply people of Jewish heritage are doing something illegal---even moreso, it is a career killer to suggest it. FBI agents have been lacerated and condemned----even losing their jobs.
Madoff seemed to know L/E dared not suggest he was doing something illegal, and he may have colluded to use scary charges of anti-Semitism to forestall investigations into his operation.
Madoff had a lot to lose if he was investigated. He knew he was operating a fraud----a fraud that subsidized his lavish lifestyle; posh homes all over the world, several yachts, private planes, country club memberships, and purchases that included pricey watches and jewelry.
The big question is WHICH pigeons. To be honest, we may never know. Probably they invested through offshore feeders, under fake names or shell entities with faked-named owners/principals, made (and/or laundered) a boatload of money, and won't be coming forward to complain.