4. This is by far the most important part: The SEC is supposed to be watching for exactly these kinds of scams. Yet the SEC missed them, and they even brought in Madoff family members to monitor markets! That is how much they missed what was going on.
It gets a lot worse. A man named Harry Markopoulis repeatedly warned the SEC that this was a scam, that results such as what Madoff claimed were simply not possible. He sent detailed accusations about Madoff to the SEC. They were completely ignored.
Now, when do the people who ignored these vital communications go on trial? Madoff at least has the excuse that he wanted to be rich -- and, in a way, while it's a pitiful excuse, it's at least understandable.
What excuse do the regulators have? Why are they not being tried for criminal dereliction of duty? When they go on trial, we really will have a new day in securities law.
Read the full story here - with Ben Stein. The SEC was derelict. They need to be called to account also.
The advisors who shoveled the money Madoffs way - they need to be shaken down also.