It is certainly generous of Mark Cuban to explain to the SEC how to break open the Madoff case given the rocky relationship between them at this time, but Cuban had an interesting suggestion for the SEC on his blog yesterday.
Cuban wrote that if it he was the person investigating the case, the first people he would want to talk to would be Madoff’s software developers. He states:
Somewhere along the line there was a software program written or modified that allowed Madoff to enter the numbers he made up, who they were paying out cash to and would print the checks and statements. Its very unlikely that it was off the shelf software because it would be impossible for all the numbers to balance, or he would need to use suspense type of accounts that would raise red flags for even the smallest of accounting firms.
He adds that
someone had to outline the details of what they wanted the software to do, and in a scam of this size, could it be anyone but Madoff himself ? Someone had to take that information and either create or modify software to keep the whole mess running smoothly for him.
Find the programmers who wrote the software and you will find out how the whole thing worked.
It’s an interesting point and one that we have not seen anywhere else. Of course, the SEC is no doubt reading Cuban’s blog intently by now, so if this was not already on their radar screen it is now.