“Where do you think the next big Ponzi scheme will occur?” That’s what I asked Harry Markopolos, author of No One Would Listen, during the Q&A following his March 30 talk to Boston Security Analysts Society (BSAS).
Markopolos isn’t too worried about seeing another big Ponzi scheme soon. He gave two reasons.
- Markets are down. That’s what triggered the redemptions that brought down Madoff and others.
- The SEC is now making Ponzi schemes a high priority.
However, most Ponzi schemers don’t register with the SEC, said Markopolos. That helps them to stay hidden from the SEC. Markopolos said the SEC typically finds out about Ponzi schemes through tips. The many poor-quality tips submitted to the SEC make it hard to sort out the good from the bad.
If you’d like to learn more about Markopolos’ perspective, check out his book. Many BSAS members lined up after the talk to have him sign their books. He’s a hometown favorite and past president of the BSAS.
* Tweets on talk by Harry Markopolos, Madoff whistleblower
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Copyright 2010 by Susan B. Weiner All rights reserved