Documented allegations of fraud against Madoff Investment Securities, LLC were presented to the Securities Exchange Commission as early as 1999 by Harry Markopolos, a Certified Fraud Examiner.
Documented allegations of fraud against Madoff Investment Securities, LLC were presented to the Securities Exchange Commission as early as 1999 by Harry Markopolos, a Certified Fraud Examiner, according to the Wall Street Journal. The investment scheme orchestrated by Bernard L. Madoff, described by the SEC as “vast” and designed to “deceive investors, the public and regulators,” may have lost tens of billions of dollars and is allegedly one of the largest frauds in U.S. history.
In one of his written communications to the SEC, dated Nov. 7, 2005, Markopolos detailed 13 red flags challenging the legitimacy and legality of Madoff Securities’ investment scheme. Markopolos, of Boston, also concluded that it was “highly likely” that “Madoff Securities is the world’s largest Ponzi scheme.” A Ponzi scheme is an illegal business practice in which new investors’ money is used to make payments to earlier investors.
As investigators work to sort out the details of the alleged multi-billion dollar deception, it comes as no surprise to many in the anti-fraud community that the scheme fell under the scrutiny and skeptical eye of a CFE like Markopolos. As experts in the four major areas of fraud (financial transactions, legal elements of fraud, fraud investigation, and criminology and ethics), CFEs are trained to see the warning signs and red flags that indicate fraud and fraud risk.
More than 23,000 CFEs are actively fighting fraud worldwide, making a significant impact in business and government through fraud detection and prevention. To become a CFE, one must:
- Pass a rigorous examination administered by the Association of Certified Fraud Examiners (ACFE).
- Meet specific education and professional requirements.
- Be approved by the ACFE certification committee.
- Exemplify the highest moral and ethical standards and agree to abide by the bylaws of the ACFE and the CFE Code of Professional Ethics.
- Maintain annual CPE requirements and remain an ACFE member in good standing.
Contact the ACFE
For more information, email PR@ACFE.com.