Every sector of the financial services industry failed during both scandals and, unbelievably, it turned out no one was doing the job they said they were doing. Tragically, the financial services industry is its own worst enemy, driven by foolish fads destined to end in disaster as bad money and loosening credit standards drive out good money and sound lending standards. Large financial institutions are not much different than lemmings in search of the next cliff to jump off of. Big frauds are glaringly easy to spot if you simply ask "does this make any sense? Banks, investment banks, hedge funds, pension funds, endowments, and regulators of all stripes failed to exhibit even a modicum of professional skepticism.
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The famed Madoff whistleblower could make millions after publishing a report accusing GE of fraud Aug. Ghanbari Age: 62 Family: Markopolos is married to Faith Markopolos, who also works in the financial industry. They have three sons. Career: Markopolos started his career on Wall Street as a broker with Makefield Securities, a small brokerage based in Eerie, Pennsylvania. Today, he works as a forensic accounting analyst for attorneys suing companies under the False Claims Act.
How did Markopolos get to where he is now? His view was that Madoff was either running a massive Ponzi scheme or was front-running using his order flow. Markopolos made numerous filings to the agency in , , and But Markopolos stayed on the case, and in Madoff was arrested and eventually pleaded guilty to running a Ponzi Scheme. Madoff was sentenced to years in prison in In the book he details some odd practices and beliefs.
For instance, he used to keep an old army gas mask nearby in case the SEC came to his home with teargas. The journal described him, and most whistleblowers, as "a little bit nuts. He has repeatedly denied that a financial bounty motivated him to pursue the Madoff case over the years, the WSJ reported.
Markets Insider is looking for a panel of millennial investors. Markopolos and General Electric On Thursday, Markopolos posted a report online that alleges that General Electric has made inaccurate and fraudulent financial filings with regulators in order to mask its struggling business. He also called the accounting practices "Enron-esque," referring to the scandal that drove the Houston-based energy company to bankruptcy.
GE called the claims meritless, and CEO Larry Culp has also spoken out about the report, calling it market manipulation. Questions have been raised after news broke that Markopolos could make millions from the allegation. Markopolos has an agreement to receive a portion of the trading profits. He could also receive a cash reward through a government whistleblower program run by the SEC.
Madoff whistleblower says GE is 'one recession away from Chapter 11'
From to , he served as a portfolio manager at Boston -based options trading company Rampart Investment Management , ultimately becoming its chief investment officer. According to Markopolos, anyone who understood the underlying math of the markets would have known they were too volatile for this to be possible even in the most favorable conditions. He eventually concluded that Madoff could not mathematically deliver his purported returns using the strategies he claimed to use. He claimed it took him another four hours to uncover enough evidence that he could mathematically prove that they could have been obtained only by fraud.
Whistleblower Harry Markopolos Says the SEC Hasn’t Paid Him for His Work