"This is a fraud, Frank," I told him. "You're an option guy. You know there's no way in hell this guy's getting these returns from this strategy. He's either got to be front running or it's a Ponzi scheme. But whatever it is, it's total bullshit."
The book than describes the series of failed attempts to inform market supervisors, mainly SEC about the fraud. It is incredible history of ignorance and neglect by the regulator.
It is also the story of human naivety, about the incredible ease with which we sometimes trust in people who are just untrustworthy.
As I wrote before - the most horrific conclusion from reading of this book, is not the Madoff evil nature - but the complete lack of true, deep supervision by SEC and other US and international authorities.
The book ends with chapters that look like advice for authorities - how to improve SEC and make it true regulator and true protector. In this spirit, the author's lawyer, Dr. Gaytri Kachroo has offered a speech at World Legal Forum. It's audio version is available here.
We must ask the rethoric question: "Do they listen now" ???
Finally, when writing about Madoff it is hard not to contemplate on his distorted and depraved mind. Not all know, that he embezzled a lot of money from Jewish charitable institutions, Jewish educational institutions (like Yeshiva University) and foundations. See this as one of the most critical examples....