WASHINGTON — House lawmakers accused the Securities and Exchange Commission on Wednesday of impeding their probe into how the agency failed to uncover the alleged $50 billion fraud perpetrated by Bernard Madoff.
The clash between lawmakers and high-ranking SEC officials came at a hearing after the whistleblower in the case, Harry Markopolos, said he had feared for his physical safety and would turn over new evidence to the agency showing that the alleged Ponzi-scheme mastermind had not acted alone.
Markopolos said he had discovered a dozen additional funds that funneled money to Madoff.
Managers of investment “feeder” funds that relayed money to Madoff willfully turned a blind eye to his improprieties because they were paid generous fees, Markopolos said.
He plans to present his findings to the SEC’s inspector general today.
