MADOFF PONZI SCHEME: SEC FAILURE AND WHY (INCLUDES CD-ROM) -- MADOFF PONZI SCHEME: SEC FAILURE AND WHY (INCLUDES CD-ROM) -- CONTENTS -- PREFACE -- Chapter 1 OPENING STATEMENT OF SENATOR RICHARD C. SHELBY, HEARING ON SEC INSPECTOR GENERAL'S REPORT ON MADOFF FRAUD -- Chapter 2 INVESTIGATION OF FAILURE OF THE SEC TO UNCOVER BERNARD MADOFF'S PONZI SCHEME∗ -- EXECUTIVE SUMMARY -- End Notes -- Chapter 3 TESTIMONY OF HARRY MARKOPOLOS, CFA, CFE, BEFORE THE U.S. HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES -- INTRODUCTION -- PART I. MY CONTACTS WITH THE SEC FROM 2000 - 2008 -- Late 1999 - 2000 -- 2001 -- 2002 -- 2003 -2004 -- 2005 -- 2006 -- 2007 -- 2008 -- Concluding Thoughts -- TIMELINE -SEE CHART -- PART II. REBUILDING THE SEC -- The Current Situation is Dire but Fixable: there is no where to go but up! -- The SEC is a Failed Regulator: But it Can't Remain One -- Rebuilding the SEC: -- Dramatically Upgrading SEC Employee Qualifications & Educational Budgets: -- The SEC Needs to Adopt Industry Compensation Guidelines in Order to Compete: -- Raise the Enforcement Bar to Incorporate Good Ethics into the SEC's Mission Focus: -- Revamping the Examination Process: -- An Alternative Course of Action: Disbanding the SEC -- An Alternative Course of Action: Assigning the NYAG & MSD to Enforce Large, Industry-Wide Cases and let the SEC Conduct the Routine, Paperwork Inspections -- Recommendations for the New SEC Chair -- Chapter 4 TESTIMONY CONCERNING THE SEC'S FAILURE TO IDENTIFY THE BERNARD L. MADOFF PONZI SCHEME AND HOW TO IMPROVE SEC PERFORMANCE -- I. INTRODUCTION -- II. CURRENT INITIATIVES -- The Enforcement Division -- Office of Compliance Inspections and Examinations -- A. Expertise, Experience and Supervision -- The Enforcement Division -- The Office of Compliance Inspections and Examinations -- Agency-wide.

B. Communication and Coordination -- Office of Compliance Inspections and Examinations -- The Enforcement Division -- C. Examination and Investigative Planning and Follow-Through -- Office of Compliance Inspections and Examinations -- The Enforcement Division -- D. Resources -- The Enforcement Division -- Office of Compliance Inspections and Examinations -- E. Additional Initiatives to Protect Investors -- III. RECENT ENFORCEMENT EFFORTS -- IV. CONCLUSION -- End Notes -- Chapter 5 WRITTEN TESTIMONY OF H. DAVID KOTZ INSPECTOR GENERAL OF THE SECURITIES AND EXCHANGE COMMISSION, BEFORE THE U.S. SENATE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS -- INTRODUCTION -- Request to Undertake Madoff Investigation -- Commencement of Our Madoff Investigation -- Retention of Experts -- Testimony and Interviews Conducted in the Madoff Investigation -- The OIG's Investigative Team -- Issuance of Comprehensive Report of Investigation -- Results of the Madoff Investigation -- Additional OIG Reports -- CONCLUSION -- Chapter 6 WRITTEN TESTIMONY OF HARRY MARKOPOLOS, CFA, CFE CHARTERED FINANCIAL ANALYST CERTIFIED FRAUD EXAMINER BEFORE THE US SENATE BANKING, HOUSING AND URBAN AFFAIRS COMMITTEE -- INTRODUCTION -- THE CURRENT SITUATION -- My Comments on the SEC IG's Madoff Report -- Where Are the Other Financial Regulator's Inspector Generals' Reports? -- COMMENTS ON THE SEC'S REFORMS TO DATE -- RECOMMENDATIONS FOR THE SEC -- APPENDIX I. NOTICE OF MISINFORMATION IN THE PRESS AND MEDIA FROM HARRY MARKOPOLOS, CFA, CFE, SEPTEMBER 10, 2009 -- APPENDIX II -- APPENDIX III -- INDEX -- Blank Page.