Bernie Madoff told investigators at the US Security and Exchange Commission (SEC) that he was "astonished" that his Ponzi scheme was not uncovered in the wake of an interview he gave the regulator in May 2006.A report from the SEC's inspector general David Kotz released yesterday (September 2nd) revealed that Mr Madoff handed over details of his account with clearing agency Depository Trust Co during the questioning and was certain that investigators would check out the account.If they had done so, investigators would have "immediately realized that Madoff was not trading in anywhere near the volume that he was showing on the customer statements", the report claimed.However, because details were not followed up - an inaction deemed by Mr Kotz to be the "most egregious failure in the enforcement investigation" - the Ponzi scheme ran for another two-and-a-half years before finally being toppled.In an interview with Bloomberg, Andrew Kelly, a fund manager at Cartesian Capital Partners, said that the world of hedge funds has been turned upside down by the Madoff affair, with clients demanding much more transparency and involvement in dealing with the funds.