Harry Markopolos had some choice words for the SEC, when called to testify about his numerous attempts to blow the whistle on the enormously damaging Bernard Madoff Ponzi Scheme.

"You are both a captive regulator and a failed regulator," said Markopolos in his testimony to a U.S. House subcommittee.

Markopolos said he spent nine years trying to get the SEC interested in Madoff's doings. He also stated they couldn't understand the scheme because of the complex financial instruments involved.

"The SEC was never capable of catching Mr. Madoff," Markopolos said.

Markopolos also said more “feeder funds” are out there, but haven't come out of the woodwork just yet.

"My team was out there in the field talking to the Madoff feeder funds and identifying who they were," he said. "There are 12 more out there lying low in the weeds in Europe that you have not heard of yet."

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