Offshore Capitalist

Bernie Madoff ‘astonished’ Feds missed his fraud

It wasn’t enough for felonious Ponzi patriarch Bernard Madoff to bilk his clients of over $60 billion in assets. Now, the jailbird stock swindler is trash-talking about the very federal authorities who should have caught him and stopped the largest financial scam in history.

In a jailhouse interview released late Friday by H. David Kotz, the Securities & Exchange Commission’s inspector-general, Madoff disses SEC investigators as bumbling bureaucrats and says he was “astonished” that no one caught him earlier.

“It would have been easy for them to see,” Madoff said of the clueless financial cops who failed to perform what he called “accounting 101.” The interview was among more than 6,000 pages of assorted documents Kotz released on Friday that he has collected during his investigation of years worth of the SEC’s Madoff-related actions.

The young government investigators failed to check such basic information as Madoff’s account with Wall Street’s central stock-clearing office, not to mention his dealings with the companies that supposedly handled his fictitious trades, the Ponzi master said.

“If you’re looking at a Ponzi scheme, it’s the first thing you do,” Madoff said during the the June 17 jailhouse interview. “It never entered the SEC’s mind that it was a Ponzi scheme.”

If it had, Madoff asserted, the SEC could have easily uncovered what turned out to be the largest such financial fraud in history and a black eye for the regulatory commission charged with monitoring and stopping exactly such crimes. Instead, SEC examiners relied on Madoff’s word — which turned out to be worth mud — and other materials he provided, which also were fabricated.

via Bernie Madoff ‘astonished’ Feds flunked ‘accounting 101′ and missed his fraud — DailyFinance.

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