"Madoff Securities is the world's largest Ponzi scheme," Markopolos wrote, before listing 29 so-called red flags supporting the notion.
The SEC, as it would do again and again until Madoff gives himself up in December 2008, blithely ignored the report. "Clearly the SEC was afraid of Mr. Madoff," Markopolos later told a thunderstruck Congress. Not to mention its own shadow.
NEXT: Feb. 21, 2006: Top-ticking the housing market