Another Finger Points to the SEC

Harry Markopolos ready to settle the battle over who's to blame for missing the gigantic (alleged) Madoff fraud. Markopolos, a securities industry executive and fraud investigator, waged a decade-long campaign to alert regulators to problems in the operations of now-disgraced financier Bernard L. Madoff and is now assailing the SEC for ignoring him.

OK. So we may now know who (unwittingly or otherwise) facilitated the fraud. But where did all that money go? How can we make sure it never happens again? And how are affected investors supposed to file taxes without any word from the IRS on what to call their losses?

The SEC has also been sustaining volleys of criticism from lawmakers and investor advocates over its failure to discover what could be the biggest Ponzi scheme ever -- despite the credible allegations brought to it over the years. The SEC leadership has also admitted it dropped the ball, and the agency has been aggressively pursuing smaller Ponzi perps.

Markopolos, 52, will testify to the House Financial Services Committee’s capital markets panel along with SEC directors Linda Thomsen, enforcement; Andrew Donohue, investment management; Erik Sirri, trading and markets; Lori Richards, compliance and inspections; and Acting General Counsel Andy Vollmer.