Madoff whistleblower blasts SEC

A fraud investigator told Congress that he'd warned the agency about Madoff's Ponzi scheme years ago. But his efforts went nowhere.

A whistleblower who repeatedly warned the Securities and Exchange Commission that Bernard Madoff was perpetrating a massive investment fraud testified Wednesday that the regulatory agency that oversees financial markets is inept, "financially illiterate" and far too cozy with the financial titans it is supposed to be regulating.

"The SEC is also captive to the industry it regulates and it is afraid of bringing big cases against the largest most powerful firms," said Harry Markopolos, an independent financial fraud investigator. "Cleary the SEC was afraid of Mr. Madoff..."

CNN Money: Madoff whistleblower blasts SEC