"Madoff Wall of Silence"

A long time ago, during another period when the Mafia was lionized, Jimmy Breslin wrote that the Mafia would meet its match if it dealt with "WASP Wall Street Bankers" -- he claimed they made the mobsters look like pussycats.

Perhaps that's why the following doesn't surprise me.

"By JAMES DORAN, Post Wire Services
BERNARD MADOFF
Raised Wall St. suspicions.

Senior executives at some of Wall Street's biggest firms were convinced Bernard Madoff was a fraud as early as 2005 - yet none alerted authorities, documents filed with the Securities and Exchange Commission reveal.

Leon Gross, the former managing director in charge of worldwide equity derivatives research for Citigroup, told friends and colleagues on Wall Street in 2005 that he thought Madoff was being less than honest about the returns he could make for investors but did nothing to prevent the fraud.

Likewise, Joanne Hill, Goldman Sachs' global head of equity derivatives research, believed there was something wrong with Madoff's investment scheme because the returns he boasted in marketing materials seemed too good to be true.

Like Gross, Hill did not alert her superiors or regulatory authorities. She did, however, tell friends and colleagues about her suspicions.

Bud Haslett, of Write Capital Management, an investment firm, also suspected something fishy. But he told no one of his concerns.

The actions - or inaction - of the bankers is unveiled in a 700-plus-page dossier of e-mails, letters and analysis filed with the SEC by Harry Markopolos, the fraud investigator who tried to blow the whistle on Madoff for eight years.

The silence by the executives is disturbing to some, who claim a second alarm bell could have forced the SEC's hand and brought Madoff's alleged scam to an end sooner.

Markopolos told the SEC, according to the documents in the file, that he had been in contact with Gross, Hill and Haslett and that they would give evidence to the SEC so long as they were never required to speak in an official capacity.

Citigroup confirmed that Gross had been an employee but had left the bank some months ago. The company declined to comment about his views on Madoff.

A source close to Citi said Gross should not be singled out, as his views about Madoff were commonplace on Wall Street, adding that Gross did not spend much time analyzing Madoff's investment strategies.

Goldman Sachs did not return calls seeking comment. Write Capital Management, meanwhile, has not filed records with the SEC since 2006.
'

Some folks think Madoff got a "pass" because he knew about some other frauds - making him untouchable.