After the many scandals of recent years it takes a lot to shock me these days. However, shocked I was. I’d just finished watching ‘Hunting Madoff’, a fabulous film (if you’re a geek like me that is) looking at the Ponzi scheme, that was the Madoff fund. It wasn’t the scale of the fraud that shocked me, or the truly heartbreaking stories from individuals who had lost every penny of their lifesavings. What shocked me so much, was the absolute ineptitude of the Securities and Exchange Commission (SEC) and the regulators in the US. The film details the story of Harry Markopolos, an investment manager based in the US who saw the Madoff fund for what it was – 10 years before the fund failed with over $50billion under management.
He’d noticed that the fund ALWAYS performed well in any market. He figured this was impossible, to outperform everyone, no matter what the market conditions. It had to be a scam. Continue reading

