Whistleblower who saw financial red flags receives standing ovation

At the North American premiere of  “Chasing Madoff,” a Canadian film about the man who blew the whistle on Bernard Madoff, Harry Markopolos, the whistleblower, received a standing ovation, but said he didn’t feel like a hero (Reuters).

“I was scared. I carried a gun and checked for bombs for six years,” he recounted.

Photo “Red Flag” (CC) by jang1993 at Flickr.

In an interview for Fraud Magazine, Markopolos, described his efforts to warn authorities about Madoff’s dangerous ponzie scheme.

“My team and I tried our best to get the Securities and Exchange Commission [SEC] to investigate and shut down the Madoff Ponzi scheme with repeated and credible warnings,” Markopolos said during his testimony before the Financial Services Subcommittee on Capital Markets. He said he submitted an eight-page document listing red flags and mathematical proof of a major fraud to the SEC’s Boston Regional Office in May 2000.

He resubmitted evidence to SEC offices in 2001, 2005, 2007, and 2008, but to no avail.

The 2008 stock market crash–not Markopolos’ hard work–finally shut down Madoff’s operation. But, Markopolos isn’t done warning.

All the banks that were too big to fail are bigger now,” the numbers cruncher-turned-fraud investigator said at the Chasing Madoff after-party in Toronto.

“They (banks) will do it again,” Markopolos warned.

Photo “Red Flag” (CC) by jang1993 at Flickr.