Harry Markopolos is the longtime ignored Madoff whistle blower; “I gift wrapped and delivered the largest Ponzi scheme in history to the SEC”.
At recent hearings:
Congressman Alan Grayson: “You really have to start with the assumption that most of us in this industry really have our clients’ interests coming first.” Do you know who made that statement?
Harry Markopolos: No.
Congressman Alan Grayson: Mr. Madoff made that statement. Are you familiar with the concept of capture when you are talking about regulation? What is that? Do you know that concept?
Harry Markopolos: Yes. It’s basically when the regulator is in bed with the industry they purport to regulate and do not regulate the industry. In fact, they consider the industry the client, not the public citizens.
Congressman Alan Grayson: And have you seen that in action?
Harry Markopolos: Yes. At the Food and Drug Administration and at the SEC.
Capture: When the regulator is in bed with the industry they purport to regulate and do not regulate the industry.