As an airborne-qualified infantry captain and battalion intelligence officer in the U.S. Army, Frank Casey merited “Top Secret” clearance. Little did he know that years after his discharge from the army, he would eventually discover and help unravel perhaps the most secretive and damaging financial crime in the country’s history – the monstrous Ponzi scheme run by Bernard Madoff.

While developing alternative investment products at Rampart Investments in 1999, Casey learned about the then-mysterious Madoff through his Swiss banking connections. Working with Harry Markopolos at Rampart, who would ultimately become the scheme’s whistleblower, Casey relentlessly pursued Madoff and the Securities and Exchange Commission. The SEC later revealed they had known about Madoff’s actions for years, largely because of Casey and Markopolos.

Casey has since formed a new investment company in Boston, where he lives and resides with his wife Judy. He is also leading the charge to establish a business ethics institute in Boston.

Frank Casey

Title: Consultant to alternative investment industry, Frank R. Casey Co.; Boston

Age: 62

Experience: 35 years

Why did you go initially go after Madoff?

Because he was beating me in the investment world. I wanted to create a product that could compete with Madoff’s. I wasn’t seeking glory.

I found Madoff, but Harry Markopolos, who worked with me at Rampart, went after him along with the rest of the “Fox Hounds,” Neil Chelo at Rampart; David Ocrant, who wrote the first article exposing Madoff; and Gaytri Kachroo, Harry’s attorney.

We helped to bring Madoff down. But it was the financial implosion in the fall of 2008 that ended Madoff. But we did explain how he did it, how he hid it, and how hideously negligent and, I believe, actively complicit, the SEC was in the Madoff nightmare.

Do you think being based in Boston made a difference in deciding to go after Madoff?

Yes, absolutely. Boston has a business ethic. We are a bastion of conservative banking.

You can’t act badly in Boston without it coming back to bite you in the behind. In New York, you just walk across the street, leave the dirt for someone else. It’s an anonymous city.

We also figured Madoff wouldn’t know what we were doing in Boston. Madoff’s secretary [later] said that if Bernie had heard about [Markopolos] earlier, which would have been the case if we were talking this up in New York, that Bernie would have killed Harry.

Are you saying that literally?

Harry was sitting on a $65 billion scheme, the largest theft in history. And Madoff was stealing it from people who don’t like their money stolen – Russian mafia, offshore drug money, European royalty.

You “discovered” Madoff. What does that mean?

In 1999, I’m at Rampart trying to sell a fund based on a pool of hedge fund managers, and I hear about a guy in New York whose kicking out 1 percent to 2 percent a month, like clockwork. And he never loses. In a 10-year stretch, this guy misses his monthly mark four times. I wanted to find out how this guy was doing it. I wanted to beat him.

I discovered Madoff through Thierry Magon de la Villehuchet. Thierry introduced himself quite simply. “I represent the wealthiest individuals and banks in Europe.” Thierry’s clients were Europe’s big, secretive wealth management banks and he had all their money with one guy, whose name he wouldn’t give me. And all the guy ever sent were trade confirmation slips. I got his name off one: Bernard Madoff Securities. Thierry turned white and reiterated the need for secrecy. But the hunt was on.

[Editors Note: Magon de la Villehuchet committed suicide in December 2008]

At this point, are you suspicious?

No, I’m blinded by the greed. Thierry agreed to place money with Rampart if we could match Madoff. But I think he was struggling with the unreality of Madoff. I think he was actually trying to do some due diligence.

Did you develop a new product?

No. Within five minutes of my description of Madoff [to Markopolos], Harry said, ‘It’s a fraud for starters and probably a Ponzi scheme.’ And he refused to get involved. I thought Madoff might be front running, buying ahead of his legit market maker takedowns. It’s illegal, but we never imagined he was pretending. But Harry knew. And he did the math to show us. And then he went to the SEC.

In 2001, there were a lot of guys on Wall Street who were dirty, and this guy is big and dirty. Why not move on with your career?

I don’t know in my heart of hearts why we did this. There was no bounty, no reward, no business to be gained. We were the ones who discovered it. And we were pissed off at the SEC. And we started to hear about who else had invested. They weren’t all wealthy Swiss banks.

It wasn’t until [Christopher Cox, chairman of the SEC at the time] publicly admitted that the SEC had known for at least three years about Madoff – they actually knew for eight – that Harry and I felt some sense of justice. But we still felt sick. The man was a monster and the SEC let it all happen. And they (the SEC) still haven’t formalized rules on the securities whistleblower laws.

Where do you go from here?

I’m starting a new investment company. And I’m working with Gaytri and the rest of the Fox Hounds to establish a national ethics center. A lot of colleges are putting ethics courses into their curricula, especially the business and law schools. We want to create a central resource center.

Where are you looking to establish the center?

In Boston. Where else? We’re still all here in Boston. The Boston financial community supports us. Heck, the team started here, why not finish it here?

Frank Casey’s Top 5 Favorite Ports Of Calls, And Favorite Restaurants In Each:

• Nantucket – The Brotherhood of Thieves
• Provincetown – Jimmy’s Hideaway
• Newport – The Black Pearl
• Boston – Pomadoro
• Bermuda – Staying on the boat