Madoff whistleblower gives SEC new tips
Harry Markopolos sends securities regulator two new fraud tips after informing SEC of Madoff Ponzi scheme.
Madoff's London secretsNEW YORK (CNN) -- Harry Markopolos, the fraud investigator who was repeatedly rebuffed by the Securities and Exchange Commission in his efforts to blow the whistle on Bernard Madoff, Thursday presented SEC Inspector General David Kotz with evidence of two new potential cases of investment fraud.
"Pursuant to an agreement with him I've handed those tips to the office of the [SEC] Chairman Mary Shapiro," Kotz told CNN. Kotz said he could not elaborate on the tips from Markopolos.
Kotz and members of his staff met with Markopolos and two of his attorneys for seven hours Thursday, as part of the inspector general's investigation into the SEC's failure to uncover Madoff's alleged scam.
"He's a key witness in our investigation," said Kotz. "It was a very productive meeting. We received a tremendous amount of good information."
Kotz said he is still months away from issuing a report on the SEC's performance in the Madoff matter. Testifying before the House Subcommittee on Capital Markets Wednesday, Markopolos slammed the SEC's failure to heed his warnings that Madoff was a fraud.
"I gift-wrapped and delivered the largest Ponzi scheme in history to them and somehow they couldn't be bothered to conduct a thorough and proper investigation," said Markopolos.
Madoff remains under 24-hour house arrest at his luxury apartment on Manhattan's Upper East Side. A former Chairman of the Nasdaq Stock Market, Madoff told FBI agents he had operated a scheme that may have cost investors $50 billion, according to a criminal complaint. He faces one count of securities fraud. 
-
Anne Giapapas has a job in one of the 15 most overworked and underpaid professions. More -
These 5 businesses are offering their services -- from shoes to hair cuts -- to the unemployed. More -
These rising stars, like Facebook's Mark Zuckerberg, have great jobs to fill. Here's what they're looking for. More -
They graduated into the worst economy in decades. Here's how 11 grads are getting by. More -
Executives like News Corp. chairman James Murdoch raked it in. Where the other 19 rank. More -
These 5 cities have the fastest-growing foreclosure rates. And they're not the usual suspects. More
