Harry Markopolos, the man who uncovered Madoff


“No one paid us, a four man team, to uncover Bernard Madoff. We paid out of our pockets. We had to stand up and do this for free, for patriotism," said Harry Markopolos, guest speaker at this year’s Sophocles and Louisa Zoullas Memorial Hellenic Lecture, held last month on the grounds of the Dormition of Theotokos Greek Orthodox Church in the Hamptons. Over four hundred persons attended from the tri-state area, including former Senator Alphonse D’Amato, Judge Nicholas Garaufis, Margo and John Catsimatidis and other prominent individuals.

By Prof. Catherine Tsounis

Dr. Peter Michalos, the program moderator, made the introduction. "It is always an academic and religious event held twice a year," he said. "Tonight, this lecture is about Democracy and Justice. Mr. Markopoulos, who is of Chian background, is a teacher and educator. He explained to the United States Congress and the entire world what financial transparency is all about. The Ancient Greek Philosopher Isocrates said ‘the roots of education are often bitter, but the fruit is sweet’."

Bernard Madoff cost thousands of investors $65 billion, according to a recent report by Larry Neumeister. "Many people were negligent in the Madoff fraud, including the government’s watchdog agencies. The Securities and Exchange Commission (SEC) Chairman Mary Shapiro has said the agency has been revamping itself, buttressing enforcement efforts and taking initiatives to protect investors following the Madoff scandal." In his lecture, Mr. Markopolos explained that his "documentation was buried in the SEC and ignored. SEC had a negative attitude towards his findings. The Hedge Fund industry must be more diligent to customers, revealing exactly what they are doing, and not in secret. This is a global tragedy. Research, Non-profit Institutions, Endowments are now gone. The banking and security regulators were asleep, destroying the United States’ credibility." His dry sense of humor kept everyone’s attention during the lecture. He described complex events in simple terms understandable to the average person.

"I know I am not a hero," said Markopolos. "Nor am I brave. We were four men of four faiths who worked against an Army of Bernard Madoff. We tried going to the Press. The Press thought we were crazy and did not print our findings. One may ask where did the Ponzi money go? Twelve percent went to victims and individual investments. Feeder funds and marketing agencies received four percent. Madoff received one percent." A Ponzi scheme uses money from new clients to pay off old ones. According to a recent interview with Bernard Madoff in Neumeister’s article, "it might be in many different venues …because money was paid out to Feeders."

Markopoulos believes the Feeder Agencies helped Madoff to succeed. "Greeks are tactless. I tell it like it is. Madoff did not allow outside audits, taking money from organized crime and nations. Forty-nine nations were affected by this Ponzi scheme. We are now less trusting of financial institutions. What frightened our team of four persons was that the Press could not take Madoff down. He was the President of Nasdaq. We were really worried about ourselves. I believed that if Madoff found out I turned him in, I would not be long for this world."

Mr. Harry Markopoulos was born in Erie, Pennsylvania in a tight knit Greek-American family. His seventeen year military background in the Army National Guard and Reserve, where he served as a lieutenant to major, was revealed in his lecture by describing his strategy against Madoff in military terms. His brilliance as a mathematician is legendary.

Mr. Nicholas Zoullas funded this exceptional event free to the community for persons of all background. His generosity is enabling mainstream America to meet the top religious thinkers and prominent persons shaping the image of the twenty-first century Greek American. Rev. Alexander Karloutsos, the Parish Dean, Mr. Dimitrios Hatgistavrou, the Parish President and their Community are commended for their efforts to enhance the quality of intellectual life on the East End of Long Island.

©2009 NEOCORP MEDIA


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