Bernard Madoff may have been able to perpetuate one of the largest frauds in history by playing two business roles. The Securities and Exchange Commission knew him as someone who helped create Nasdaq and an expert on electronic trading. "Bernie had a good reputation at the SEC with a lot of highly placed people as an innovator as somebody who speaks his mind and knows what's going on in the industry," says Donald Langevoort, who served with Madoff on an SEC advisory committee. Meanwhile, Madoff was running a separate investment business on the fringes of regulation.
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