No One Would Listen: A True Financial Thriller by Harry Markopolos (rainbow fish read aloud .txt) 📗

husband John Davidow and Curt Nickisch of National Public Radio’s Boston affiliate for your in-depth reporting. To Eric King of King World News—thank you for teaching me how to interview.

To the men of Cathedral Prep in my hometown of Erie, Pennsylvania, thank you for your overwhelming support. Thanks especially to Chris Haggerty and my math teachers: Stanley Brezicki, Joanne Mullen, the late Sister Mary Denise, and the late Sister Mary DePaul.

To Ed Manion, thanks for believing me over the years and urging me to stay on the case well past the point of reason. To Mike Garrity, thanks for doing your best to get others in the agency to listen.

To SEC Inspector General H. David Kotz. You are my hero. I’d love my three young sons to turn out just like you. Your hardworking inspector general team restored my faith in government. Thanks to Deputy Inspector General Noelle Frangipane, David Fielder, Heidi Steiber, Christopher Wilson, and David Witherspoon. Your dedication to the truth won out. If the SEC really does adopt all of your recommendations, your work will have been worth it—otherwise it will be business as usual at the SEC, and our nation can’t afford that.

To SEC Chair Mary Schapiro, thank you for having the moral courage to allow the SEC inspector general’s report to be issued as written despite what must have been overwhelming pressure from the senior agency staff to heavily censor it instead.

To all of the FBI agents tirelessly working on this case in order to bring the guilty to justice. Personal thanks to special agents (first names only) Keith, Steve, Julia, Rob, and Paul. The case is in good hands now. Godspeed, keep your chins up, and go where the evidence leads you—because this case is surely the case from hell. No matter what you do, you’ll never get them all. Just try to catch as many as you can. That’s all anyone can ask of you.

And now I would like to make some very important acknowledgments on behalf of each member of the investigation team: Frank Casey, Neil Chelo, and Michael Ocrant, as well as my attorney, Gaytri Kachroo. This story would not be complete without them and their supportive friends and families.

Frank Casey wishes to thank his wife Judy and the late Major Peter W. H. Van Dine, who taught him the skills and responsibilities of leadership when he was a Reserve Officers’ Training Corps (ROTC) cadet at Penn State.

Neil Chelo wishes to acknowledge his parents, Benjamin and Sevinc Chelo; brother John and daughter Sarah Chelo; as well as George Devoe Jr., CFA; Robert Ferguson, CFA; Scott Franzblau; and Jeremy Gollehon.

Gaytri Kachroo thanks her children, Kirin and Maya Kachroo-Levine; her brothers, Leeladher and Vidyadher Kachroo; her sister-in-law, Andrea Gauntlet; and her mother, Mohini Dhar Kachroo. Big thanks to Martha Minow; Mark Byers; Representatives Kanjorski, Frank, Arcuri, Ackerman, and Garrett and their incredibly helpful staffs; Mary Schapiro; David Kotz; Javier Cremades; and the executives of the Global Alliance.

Michael Ocrant thanks his wife Gail and son Max.

Last but not least, acknowledgments on behalf of David Fisher go to editors Meg Freeborn and Bill Falloon, who did such wonderful work under real pressure, as well as to Nancy Rothschild and the rest of the fine people at John Wiley & Sons. Thanks also go to Frank Weimann and Elyse Tanzillo of the Literary Group International.

David also wishes to thank Randall Arthur, Linda Yellin, George Cole, and Patricia Black of Wallin, Simon & Black; the entire Hicker family; his wife, Laura Stevens; sons Taylor Jesse and Beau Charles; Belle, their dog; and Buck, the Hall of Fame cat.

HARRY MARKOPOLOS

Index

Absolute Return

Absolute return strategy

Access International Advisors . See also de la Villehuchet, Rene-Thierry

Accounting firms

Ackerman, Gary L.

Adelman, Jim

Adelphia case

Advisors Act

Affinity scheme

Alarm systems

Arthur Treacher’s Fish and Chips Restaurant

Arvedlund, Erin

Asian investors

Association of Certified Fraud Examiners

Audit opinions

Avellino & Bienes

Bachenheimer, Doria

Bank foreclosures

Barron, Charles

Barron’s

Bates, Harry

Becker, David

Benchmark Plus fund

Bergers, David

Bernard L. Madoff Investment Securities LLC,

Bid/ask spreads

Black box strategy

Bloomberg terminals

Boilermaker’s Union

Bounty program

Broker-dealer profits

Brown, Jerry

Broyhill, Paul H.

Broyhill All-Weather Fund

Bull spreads

Burns, Pat

Bush administration

Call options

Capito, Shelly

Casey, Frank

background of

careers at Rampart

Chicago Art Museum

continued activities of

and Dave Fraley

discovers Bernie Madoff cash needs

discovers fraudulent trades

discussion on Bernie Madoff

and Harry Markopolos

helps Neil Chelo relocate

impact of Bernie Madoff case on

leaves Benchmark

leaves Rampart

London based funds of funds avoids Bernie Madoff

on Madoff operations

meets Mike Ocrant

meets Paul H. Broyhill

meets Scott Franzblau

and mobsters

on Ponzi scheme

on Ponzi scheme vs. front-running

post Bernie Madoff arrest

public acknowledgment of role

and Rene-Thierry de la Villehuchet

on reporting to SEC

on reverse engineering

role of

sailing disaster

on SEC failure

Wall Street Journal

warns individual investors

Casey, Judy

Cattle trading scam

Charles, Prince

Chelo, Neil:

business education of

careers at Rampart

continued activities of

early career of

impact of Bernie Madoff case on

information gathering

leaves Rampart

OPRA tapes

on payment for order flow

on Ponzi scheme vs. front-running

post Bernie Madoff arrest

public acknowledgment of role

on quants

on reporting to SEC

reviews strategy analysis

role of

talks to Amit Vijayvergiya

Wall Street Journal

warns individual investors

Cheung, Meaghan

Chicago Art Museum

Chicago Board of Options Exchange (CBOE)

Chinese vitamin suppliers scandal

Citigroup

Client redemptions

Clinton, Hillary

Cohen, Steve

Collars

Commodities straddle

Commodity Futures Trading Commission

Congress:

Chuck Schumer call to SEC

Harry Markopolos testimony

investigation by

SEC established by

SEC in hearings by

Congressional Record

Contacts and relationships

Cook, Boyd

Correlation coefficient

Corruption:

as business as usual

drug cartels

incompetence vs.

municipal bonds

organized crime

regulatory

reporting on

Russian mafia

vs. stupidity

Wall Street crimes

See also Taxpayers Against Fraud; whistleblowers

Court, Andy

Covered call writing program

Cox, Christopher

Criminal investigation

CSPAN3

Cuomo, Andrew

Danger, concerns about

Darien Capital Management

Data analysis

Data collection

DeBello, Nicole

de la Villehuchet, Bertrand

de la Villehuchet, Claudine

de la Villehuchet, Rene-Thierry:

on Bernie Madoff

and Frank Casey

and Harry Markopolos

meets Frank Casey

suicide

Department of Justice

Derivative experts

Devoe, George

diBartolomeo, Dan

Dickens, Charles

Direct accounts

Discrepancies

Documentation

Documentation and literature

Dominelli, David

Donnelly, Joe

Drosos, Elaine

Drug cartels

Due diligence

Dumb equity

Ebbers, Bernie

Efficient markets hypothesis

Electronic security

Electronic trading

European banks

European investors

Excuses for investing with Bernie Madoff

Fairfield Emerald

Fairfield Greenwich Group

Fairfield Greenwich Sentry Fund

False Claims Act cases

Fax machines

Federal Bureau of Investigation (FBI)

Feeder funds

Fielder, David

Financial frauds. See also front-running; Ponzi schemes

Financial industry functions

Financial industry practices

Financial Industry Regulatory Authority (FINRA)

Financial investigations

Financial products

Financial regulators

Firearms

Firearms permit

Flaghac, François de

Forbes

Fortune

Fraley, Dave

Frangipane, Noelle

Frank, Barney

Franzblau, Scott

Fraud:

financial

financial experts response to

implicit knowledge of

market timing

medical

pharmaceutical

widespread knowledge of

See also Madoff, Bernie

Fraud examiners

Fraud investigation . See also Markopolos, Harry; Taxpayers Against Fraud; whistleblowers

Fraud investigation team

Friehling, Dave

Fritz, Jeff

Front-running

Front-running vs. Ponzi scheme

Fund investment levels

Fund sizes

Gabelli, Mario

Galvin, William

Gamma

Garrett, Scott

Garrity, Mike

competency of

public acknowledgment of role

support from

Givenchy family

Global Alliance

Global Financial Alliance

Golar Freeze

Goldman Sachs

Grant, James

Graphology

Greek heritage

Greek-Turkish