Bernie Madoff's firm was investigated eight times over 16 years by the SEC and even though red flags were discovered and despite being interviewed twice, Madoff somehow evaded the feds. SEC emails show officials believed the hedge fun was "highly unusual" in its practices and other regulators determined that a section of the company lacked any clients. In November 2005, a rival of Madoff said his firm was "the world's largest Ponzi scheme." The SEC increased their scrutiny but found no evidence of fraud. The SEC will be forced to defend its actions and inactions on Monday, when Congress convenes a hearing on the fraud.