And Now We Know Why Nobody Took Madoff Whistleblower Harry Markopolos Seriously...

Harry Markopolos Madoff

Fraud investigator Harry Markopolos, who was also the whistleblower in Bernie Madoff’s infamous $65 billion ponzi scheme, has cried fraud on Bank of New York Mellon.

The thing to remember about Markopolos is that he tried in vain to prove that Madoff was a fraud, and nobody took him seriously.

His latest comments give a hint to that.

In a recent interview with King World News, he said the bank is in some serious trouble.

Bank of New York is going to go down, Eric.  Between Bank of New York Mellon and State Street, these two institutions have stolen between $6 to $10 billion from tens of millions of Americans’ retirement savings accounts.  It’s been a hell of a crime spree for the bank, but now they are being brought to justice.”

On Tuesday, BNY Mellon was hit with two lawsuits alleging the bank took over $2 billion in illegal profits from its New York pension fund clients over the last decade.

Markopolos, who now works as an independent fraud investigator, has acknowledged he helped spearhead these investigations.

The lawsuits, which were filed within hours of each other by NY Attorney General Eric Schneiderman and U.S. Attorney Preet Bhara, both claim that the bank defrauded its clients by overcharging on foreign currency trades.

BNY Mellon has denied these claims, calling them baseless.

Here’s what Markopolos says to that:

“It’s clear that the bank’s executives—their strategy is we have to lie to maintain the fraud.  We can’t admit to our board how much we stole…of course we’d be fired.  They are saying the charges are baseless and they are going to defend them vigorously.  Well, talk is cheap.  If they are going to defend them there is only one place to defend those cases and that is before a jury and they refuse to set trial dates. The government is ready for trial tomorrow.  Why won’t the bank agree to trial dates if they are so innocent?  The answer is they are not so innocent.”

This is how he thinks law enforcement officials should handle BNY Mellon executives:

“I would expect the shareholders to be filing class action suits once they realise the extent of the fraud.  I’m thinking that if Al-Qaeda had done this to Americans, Seal Team 6 would be dropping in, but the banks did this.  So maybe law enforcement needs to drop into those corporate board rooms and treat them like Seal Team 6 treated Osama Bin Laden.

Read the full interview transcript from King World News here >>

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