Harry Markopolos: Ponzi scheme bigger than Madoff

I went through the linked paper a few years ago. It's a good exercise for those of you who are interesting in finance and trading. All you need to understand the paper is a decent grounding in financial theory and a high school education in math.

The big take away from this for me wasn't that Markopolos is a genius, though he might be. It's that exposing the Madoff fraud wasn't complicated at all, its just that no one bothered to do any due diligence at all.

In a way it's really surprising that there haven't been more lawsuits over this between advisers and clients.

http://docdro.id/eCZ73V8

A question about the Madoff case: I read that his investors were insured by the FDIC (or maybe some other acronym) to the tune of half a million USD (i.e., everyone who invested received up to half a million from US taxpayers). Did this happen?