AUSTIN, Texas--(BUSINESS WIRE)--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:
According to executive search firm A.E. Feldman, the CFE is the “gold standard” of credentials for anti-fraud professionals, and is identified as “in demand” in a recent study by Robert Half International, a leading specialist in financial staffing. To read more about CFEs, visit www.ACFE.com/about/CFE-designation.asp.
About the Association of Certified Fraud Examiners
Together with nearly 50,000 members in over 125 countries, the ACFE is reducing the incidence of fraud and providing the training and resources to fight fraud more effectively. Founded in 1988 by Joseph T. Wells, CFE, CPA, the ACFE proudly celebrates its 20th anniversary as the leader in the global fight against fraud. For more information about the ACFE, visit www.ACFE.com.