In an exclusive report published by Reuters yesterday, Madoff whistleblower Harry Markopolos indicates he is pleased with the improvements the SEC has made in following up on tips of alleged securities fraud. The SEC was criticized for its handling of the Madoff ponzi scheme, in reports written up by the SEC's own Inspector General, David Kotz, and at related Congressional hearings. Since that time, the SEC has undertaken numerous post-Madoff reforms.
"Everything they should have done in the Madoff case they are now doing," Markopolos says now of the SEC, as cited in yesterday's article by Reuters Sarah N. Lynch and Matthew Goldstein, SEC Builds New Tips Machine To Catch The Next Madoff. Markopolos adds: "They have done a fantastic job of reforming themselves."
SEC's Tips, Complaints & Referrals Portal
Lynch and Goldstein provide a link to the SEC's new Tips, Complaints and Referrals portal (the external, public side of the portal).
FBI -SEC Partnership Benefits Both Agencies; Model May Be Replicated
The Reuters writers note the working relationship between the FBI and the SEC, in which an FBI agent (a former PwC auditor) is embedded at the SEC. As noted in the article, this partnership between the FBI and another regulatory agency is believed to benefit investigations at both agencies, and the model may be replicated between the FBI and other agencies as well.