This is not quite factually accurate with regards to Bernie Madoff. The SEC ignored the whistleblower Harry Markopolos, and the fraud wasn't revealed until the

This is not quite factually accurate with regards to Bernie Madoff. The SEC ignored the whistleblower Harry Markopolos, and the fraud wasn't revealed until the fund became insolvent many years later (7-8 years after Markopolos originally suspected fraud). After he couldn't meet investor redemptions, Madoff confessed to his sons, who subsequently called lawyers and alerted the SEC. Doesn't change the point of your post though.