Customer Reviews

No One Would Listen: A True Financial Thriller

5 star:		(90)
4 star:		(26)
3 star:		(21)
2 star:		(14)
1 star:		(8)

 

 

Although I was not an investor, I have been intrigued by the Madoff scandal since it exploded in December 2008. Ever since then, I have spent hours poring over articles written in the press and documents released by the government and watched (and rewatched) all the hearings on this massive fraud. I even attended one of Harry Markopolos' speaking events to make sure that my television screen did not conjure up such a noble public servant. Of course, it is only appropriate that I would have a copy of "No One Would Listen" in my hands on the first day of its release. Admittedly, I expected the book to be more or less a summary of everything I have learned thus far - I was very wrong. "No One Would Listen, " a true David and Goliath story, is one of the most riveting nonfiction I have ever read.

In the book, young innocent David is portrayed as a "wildly eccentric quant" from Boston named Harry Markopolos who tried to defend his country from the nine feet tall Philistine giant Goliath, portrayed as Bernie Madoff. King Saul of Israel and his army (the SEC) were terrified of Goliath. "No One Would Listen" is a 10-year firsthand account of how Harry and his three friends tried to warn the government, the industry, and the press that the founder of the most successful broker-dealers in the financial industry was actually the biggest crook in history. Unfortunately, "No One Would Listen" does not have the same happy ending as the biblical David v. Goliath battle.

For the past few days, I have been reading reviews on the book and found a lot of derogatory comments about Harry's character and his book. I have to wonder to myself if these reporters read the same book that I did and why they would want to tag their name with such unsubstantiated assertions. Before I continue on the book, I have to point out some false information printed by some media outlets. These book reviews only reconfirm the financial mediocrity in the press that Harry and his team had to deal with the past 10 years - that is why no one would listen.

First, we know that in its 73 years of existence, the SEC has a history of treating whistleblowers like dirt and has only paid 2 whistleblower bounties. One reward, as told in the book, was in the amount of $3,500. I'm sick and tired of people throwing that Harry only went to the SEC because he was looking for a bounty. He knew from the start that his chance of receiving a bounty was remote. Even if he did receive a bounty, is $3,500 worth hundreds of hours of investigative research while he was most likely making a comfortable 6-figure salary at his previous employment?

Second, some reporters claimed that the reason why no one would listen is because Harry is some sort of nut that rubbed the SEC the wrong way and that he was overly paranoid for fearing that Madoff may come after him. One only has to watch Harry's Feb. 4, 2009 testimony to Congress to confirm this man's articulate manner and brilliance. Do your research on his background, and you will see how aware people are of his talents and credibility. The reason why no one would listen is because the fraud was so unbelievable - Bernie Madoff was filthy rich, why would he need to steal? The second reason, as the world now knows, is due to the arrogance and investigative ineptitude of the SEC and the press. In addressing his fear for Madoff, why wouldn't he fear Madoff? People have killed for much less. There are pending investigations with the FBI undisclosed to the public. Why would the FBI announce to the bad guys that they're about to be investigated, unlike the SEC, who called Madoff to give him a heads up on the 2006 investigation.

Third, a major media outlet criticized how Harry had made a career of being "a professional whistleblower facilitator," turning corporate employees into spies when they should be reporting problems internally. After the collapse of Enron, the SEC was charged with reviewing incidents of financial statement fraud from 1997 to 2002. Of the 515 enforcement actions for financial reporting and disclosure fraud, charges were brought against 466 managers: 75 chairmen of the board, 111 CEOs, 111 presidents, 105 CFOs, 21 COOs, 16 CAOs, and 27 VPs of finance. You tell me how a lonely staff member at the bottom of the totem pole would come up against these big honchos.

Throughout the book, if I was not cracking up laughing at Harry's oddball sense of humor, I was pounding my fist from mortification at the horrors that Harry and his team had witnessed the past 10 years. "No One Would Listen" is a reflection of the culture of greed infected on Wall Street. One event that stuck to my mind was Neil Chelo's phone interview with the head of risk management at Fairfield Greenwich Sentry Fund in Chapter 7. I was completely appalled that he could not answer any of Neil's questions on how Madoff was getting his returns, why he was always holding T-bills at year end, and why the audits only show $160MM worth of T-bills on a $1.47BB portfolio. Where did the remaining $1.31BB go? This is the same egghead that manages the risk of a $7BB fund. It was absurd how he had the gall to follow up with Neil if he still wanted to invest with the fund even after Neil had called him out for an hour straight.

Another event that had me almost vomiting was regarding 20 market-timing scandals that Harry had worked on for 1.5 years and eventually presented to the SEC. The scandals cost investors $20BB, yet the SEC decided that they were done with market timing scandals so the crooks all walked away scotch-free. Keep in mind that this all happened after Peter Scannell already testified against the SEC on how the agency missed the market timing scandal at Putnam Investments even with his repeated warnings. Our tax dollars at work. And we wonder why our country is in the midst of economic meltdown today.

As Frank Casey pointed out, Mother Teresa did not work on Wall Street. Even so, the book details the sacrifices that Harry and his team went through to expose the evil man that is Bernie Madoff, even if it means losing money to a competitor or risk getting shot in the head. These four men are the rare gems in the financial industry. If more people like them exist, perhaps Wall Street would not be such a bad place.

Toward the end, Harry revealed the nature of some of the cases he has been working on the past few years and recommendations on how the SEC could improve. He is truly blessed - a self-taught fraud investigator accomplishing more for our country in five years than the entire SEC staff has done in decades. And for that, we owe him our gratitude.

Go get 'em, Harry.

When the SEC was asleep at the wheel, Markopolos was there. It blew my mind when I read just how many times Markopolos tried to contact the SEC and the media, and so many times, he was ignored. To think of the money and the lives that could have been saved! When I wasn't baffled and educated by the contents of the book, I was laughing. Markopolos has managed to write a TRUE thriller with charm and humor. It comforts me to know that this book is out there, for all to read, and I hope it brings a lot of change to our financial watchdogs. Harry Markopolos is a hero.

Excellent account of the efforts of Harry Markopolos and his team in uncovering Bernie Madoff's fraud and then trying to expose him and get the government to act. The book is well written and documents the the abysmal failures of an SEC relying too heavily on lawyers and accountants who lack the sophistication to understand how the investment industry works and the investment solutions the industry markets to investors.

Harry's account of when Noelle Frangipane, a member of the SEC's Inspector General's team investigating the SEC's failings, broke down and cried was indeed a particularly human moment and an account I'm glad Harry put in the book. There are people at the SEC who care. The agency clearly lacks investment professionals and people with investment industry operational experience. Lawyers and accountants have their role, but they are not trained as investment professionals.

Great read! Good job Harry!

If you are attuned, you can hear the tree fall from the edge of the forest, and you know a tsunami is coming before you can see it. And so it is that master sleuth Markopolos saw what so many failed to see. I highly recommend that all but the master sleuths out there read this book. I would also recommend "What Greenspan Can't Tell You", which was published in Jan '08, and warned of "Madoff"-like schemes, and instructed readers on how they might spot them.

I had the honor of "sitting across" from Harry on the Trading Desk. I feel extremely lucky to have learned the business from the best derivatives practitioner in Boston. There are very few derivatives-related books that approach required case study readings for rookies and veterans alike. Regardless of your industry, this book is one of those rare gems that will implore you to question conventional assumptions and challenge the supposed institutional wisdom that defines your professional circles. However, unlike most biz school case studies, you won't be bored. This book reads like its master in the shadows...

In spite/despite the "flaming" by a fellow Kindle owner over the Kindle price, I found myself amused and horrified by Mr. Markopolos' well presented account of Madoff's scheme; as a member of the Bar, I live in disbelief at the non-action of the SEC. Mr. Markopolos was vainly trying to "herd chickens"!

Harry Markopolos doesn't consider himself a hero. That's about the only thing he's wrong about though. He is indeed a hero. This is the story of how a man and his small group of associates, at great personal risk, tried to prevent the greatest scam of our times. That they failed is tragic for Madoff's victims in particular and in general illustrates the failure of our institutions to protect us from even the most egregious and obvious fraud. The SEC(with 2 notable exceptions) were the biggest bunch of fools you could imagine. If you didn't know this book was absolutely true it would strain credulity to the utmost.

He relates in agonizing detail how for the better part of a decade his group handed the fraudster to the SEC on a golden platter. They presented proof after proof (red flags they called them) to the SEC proving unequivocally that Madoff was a total con, running a gigantic Ponzi scheme. And as the title indicates, "No One Would Listen". Though my math skills are fair to poor, his presentations to the SEC were crystal clear to me. You just couldn't miss it...yet they did.

I would compare what happened to a citizen finding a bloody arm from the Madoff residence and bringing it into the police station being told by the police that the arm didn't exist and 'to get our of here you're bothering me'.

He also points out how corrupt our financial system is in general, skewering the mutual fund and banking industries in particular. It seems we live in a nation of thieves. Well Harry and his group do give us cause for hope. Thank you Harry and friends for your efforts. For honest folks, you guys are heroes. This book deserves to be a best-seller now and for many weeks to come.

Transparency, I am one of the Fox Hounds: David Fisher was the ghost writer for Harry Markopolos and the Fox Hounds Team. David produced an easily read financial thriller, balancing the complexities of financial derivatives required to understand why Bernie Madoff was able to dupe investors with the thrill-fear of the hunt for the tentacles of this criminal monster. I salute David Fisher for his talent and dedication to the cause of uncovering the ineptness of regulatory powers while informing the public as to the greed and willful blindness of Wall Street.

"It's Bernie in the parlor with $5 billion!" (ref Markopolos)

I really enjoyed this book. I read it in two sittings and will be re-reading it to absorb it again. I followed the Madoff story closely through the various media outlets, but the content of this book fills in all the gaps and does not obfuscate any of the details or emotions. I will not be re-selling this book to the discount bookstore.

No One Would Listen should be a required reading for everyone working in the financial services industry. As well as I know the Madoff case by now, over a year after its collapse, the book still left me in tears at the end. Words cannot describe the anger I felt throughout the book toward all who saw this fraud but did nothing to stop it. In a world full of injustices and greed, Harry and his team give hope that good people still exist; although they did not always feel brave, Harry and his team were willing to do whatever it takes to expose the truth, even if it costs them their lives.

Kudos to Harry and his team.