'How I found the world's biggest Ponzi scheme'

Double Shot Interview-Harry Markopolos: "How I found the world's biggest Ponzi scheme 8 years before it collapsed, yet no one would listen'

8th Feb 13, 4:42pm by Bernard Hickey

By Bernard Hickey

Harry Markopolos appears remarkably relaxed now for someone who spent eight years of frustration and fear trying -- and failing -- to expose the world's biggest Ponzi scheme.

His is the biggest vindication in the financial history of the world.

Yet for eight years no one would listen, investigate and stop Madoff's Ponzi.

It is an extraordinary story, and Markopolos tells it well both in his New York Times best seller No one would listen, and in person in our Double Shot Interview.

This week I met up with Harry at his hotel in Auckland during a visit organised for him by the Serious Fraud Office.

He is the ultimate uncoverer of serious fraud.

His story is a cracker.

In the interview he talks about his fears for his safety, the red flags he spotted, what to watch for if you're invested in a Ponzi, how the US Securities and Exchange Commission failed, the amazing group think which let Madoff carry on for years, what Madoff thought of him and what he's doing now.

I heartily recommend the book and the interview.

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10 Comments

by Andrewj | 8th Feb 13, 4:45pm 1360295150

I thought it was going to be about kiwisaver :-)

by Mike B | 8th Feb 13, 5:08pm 1360296482

It is good we have people like him who keep on the case.

Sadly the world is a corrupt place. You often bring stories from China. It's everywhere.

Since the world has become a corporate world it has become more corrupt. We had Lance Armstrong now we have drugs in sports in Australia. This is because of the multi million dollars to be made from sponsorship.

I see Auckland airport is fiddling the books by overvaluing assets so they can up their charges just like the electricity companies did.

Imagine being allowed to value your own assets so you can set your charges based upon those valuations. What a rip off.

by Justice | 8th Feb 13, 6:11pm 1360300290

Auckland or Wellington? or..........BOTH?

by Justice | 8th Feb 13, 6:03pm 1360299828

Bernard, Our ENTIRE monetary system is one gigantic ponzi scheme! No one seems to give a toss about that one either................until it crashes in the near future.........WATCH!

The US Securities and Exchange commission were corrupted in the BM case. Still to this day NO ONE has been held accountable

by Justice | 8th Feb 13, 6:16pm 1360300584

I'd like Harry to state was is his current level of faith in ANY global financial institution, private or government? I'd love this type of guy to audit the RBNZ

by JB | 8th Feb 13, 7:53pm 1360306405

With our Trade deficit running at over $ 1 billion and a small interest bill of ~ $ 10 billion pa and compounding as interest does - we are borrowing to pay the interest on our debts. Sounds like a Ponzi to me.

Like Harry's situation - no one wants to know !

All we get is PR blurb about 2% growth .. forgetting to add it is entirely financed by new debt.

Let's see if we get growth when the C/A is in balance - ie we stop new borrowings and maintain foreign debt at present extreme levels only exceeded by 3 countries in the OECD.

by Hevi Groswaite | 9th Feb 13, 10:26am 1360358775

Brilliant interview BH!

Nothing new about the system, I've never trusted it (...THEM?), but actualy hearing and seeing their corruption divulged in the media, by a respectable, equanime, and obviously sincere member of their own community, is absolutely delightful!

Mr. Markopolos, my most sincere respect and admiration; honesty and valor of your magnitud are indeed rare, and very much needed in our society today. You have delivered a very healthy dose to the world at large with your actions. Thank you!!

HGW

by Wolly | 9th Feb 13, 11:58am 1360364332

Ponzi...like the NZ property market...right!

"The Government will look at KiwiSaver rules that are limiting Cantabrians' options in the white-hot housing market.

Cantabrians using their Kiwisaver money must buy a first home for less than $300,000 to qualify for a government grant, but rocketing Christchurch house prices are limiting their options"

http://www.stuff.co.nz/the-press/business/your-property/8281534/Govt-considers-higher-KiwiSaver-cap

Watch as the idiots in the Beehive throw petrol on the chc property bubble...govt grant cap up she goes...demand rises....property prices up they go...oh this is awful the new raised govt cap level is too low again...no worries....raise it again...and again....and again.....doh

by ngakonui gold | 10th Feb 13, 12:09pm 1360451358

Just finished listening to the interview on RADIO LIVE..

Sounded like the regulators thought that Madoff was another case of too big to fail.

Can anybody tell me what Harry Markopolos does now for a living.

by StanGoodvibes | 11th Feb 13, 3:21pm 1360549303

How I found the world's biggest Ponzi scheme

I just walked into my local bank, and there it was.