Bernard Madoff has been quoted as saying he was constantly afraid that the SEC was on to him, but it turns out he had little to fear. It's been clear for a while that the SEC was seriously deficient, at times it seemed investigators had dug in on his behalf in the face of criticism that they weren't doing enough. Documents released last week do nothing to dispel that generally accepted interpretation of events. 

It also turns out that Harry Markopolos wasn't the only whistle blower. The documents, according to Reuters, "note" an unnamed investor who claimed to be a former Madoff client and was "deeply concerned that Madoff is running a very sophisticated fraudulent pyramid scheme."

Six months later, an anonymous letter addressed to then SEC Chairman Christopher Cox warned of "a scandal of major proportion" brewing at Madoff's firm. It would be interesting to know who the warning parties were. Someone on the inside?  

For more:
- here's the article

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