I still can not quite come around my thoughts after reading "No one would listen" by Harry Markopols. Well, OK, here is a short review. The book was written by the real person and is, as far as I can gather, completely real story of real life events. It describes ten years long hunt conducted by the author after Bernard Madoff and his investment fund. It started, when his bosses at Rampart company wanted him to invent a financial product which could compete with Madoff double digit returns. However, when Markolopos, equipped with excellent mathematical knowledge, started to investigate Madoff strategies, they appeared to him as bogus. He quickly discovered that Madoff could run Ponzi scheme or was involved in an illegal practice of front running:"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....
