He was at one time chairman of the NASDAQ stock exchange. He advanced the proliferation of electronic trading platforms and the concept of payment for order flow, which has been described as a "legal kickback". For years, his "company" donated to federal candidates, parties, and committees, and the Democratic Senatorial Campaign Committee. Members of the Madoff family have served as leaders of the Securities Industry and Financial Markets Association He served on the board of directors of the Securities Industry Association and was chairman of its trading committee.
The SEC's Boston and New York offices ignored a decade of evidence handed to them. SEC Chairwoman Mary Schapiro was a "dear friend", and SEC Commissioner Elisse Walter was a "terrific lady" whom he knew "pretty well".
There were six investigations into Madoff by the SEC which were botched either through incompetent staff work or by neglecting allegations of financial experts and whistle-blowers.
How is this relevant to the thread?
In addition to his other victims, Bernie Madoff targeted pension funds. American workers know full well that they need to be paid up front because there's no guarantee that the government or their collaborators aren't going to rob them in the future.
As you suggest, that sort of complicity between government and elite misconduct is very nearly the key to understanding the rottenness of our era. Decades of progressive education have eroded the character of America's best and brightest and impaired the institutions and agencies they are responsible for. The public recognizes the results even though they rarely see or understand the details.