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RE: markopolos
From: Suh, Simona
---
11/412005 PM 2:18:38
To: Cheung, Meaghan S. [CheungM@SEC.GOV]
We might wantto talk to MikeGgrrityin Bostonaboutthe Opastwork [Markopolos] submitted the SEC'sBoston to
office.0
From: Cheung, Meaghan S. Sent: Friday, November 04, 2005 2.17 PM
To: Sub, Simona
Subject: RE: markopolos
I have some qualmsabouta self identified independent fraudanalyst,but who knows.
From: Suh, Simona
Sent: Friday, November 04, 2005 2:16 PM To: Cheung, Meaghan S. Subject: markopolos Some prior statements from Harry Markopolos:
From Bloomberg, 8/16/04, article re: Bush's prospects:
"Iflraqi citiesgo up in flames,so do Bush'sre-election hopes,"said HarryMarkopolos, oversees$900millionas chief who
investment officer Rampart at Investment Management Boston. in `'Andif oilprices keeprising, doKeny'schances so of
wmnmg.
[1understand Markopolos has left Rampart since then.]
From The Billings Gazette, 9/20/05 Fraud'starts at the top,' says analyst
NORWALK, - Ifyou'reconsidering Conn. blowing whistle yourcompany's activities, maybe bestto have the on illicit it
someone like Harry Markopolos on your side.
Markopolos, a chartered financial analyst independent analyst, worked a long ofpeople were and fraud has with list who fed upwith companies' their officials betraying investors' orpilfering trust millions dollars of through corporate fraud.
executive officer, Markopolos told about 20 members of the Connecticut chapterof the Society Competitive of Intelligence Professionals yesterday at the Fat Cat Restaurant in Norwalk.
Over90percent fraudby dollar of volume involves collusion senior by management, 70percent and involves chief the
"Fraud startsattheC-level. startsat thetop,"saidMarkopolos,former It a Armyintelligence officer basedin theBoston
area. can "I teach howtospot you fraud what doabout soyouaren't thehotseat." and to it, in Sometimes a company uses ~audulent activity standard as operating procedurecompete, said. to he Officials onthecorporate may high ladder Amajor culprit fraud a CEO betheboard directors, in by can of particularly members appointed theCEO, if its are by said
Markopolos, formerStamford a resident,stressingthe need for an independent auditcommittee internalauditors. and
agency, Markopolos said much depends on which agency is contacted.
encourage because fraud impressive financial results bringbonuses, protect anddriveupsalaries. jobs
While whistle some blowers benefited have financially exposingcompany earningbounty a government from a by a from
Generally, Department Justice thehighest the of pays return a whistle to blower through FalseClaims he said. the Act,
thechair a company's committee, of audit a company's anonymous hotline,whistle fraud a blowing program through the Sarbanes-Oxleyorthemedia. course, Act Of blowing whistle means the often losingjoboreven a facing lawsuit. a "You've toberealcourageousbea whistle got to blower, Markopolos Fred said. Wergeles, coordinator president SCIP and
Other options available to whistle blowers include the Internal Revenue Service, the Securities and Exchange Commission,
ofFred Wergeles &Associates Simsbury, hehas inWest said investigated companies have been that not forthcoming in
disclosing asrequired law."Hany some tips," said."Fromtools techniques data by has great he a and standpoint, I've
intelligence.
learned about tofind corporate alot how out information. hasexcellent onthe Healso advice human ofcorporate side
K. Suh
Simona
Staff Attorney U.S. Securities and Exchange Commission
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