Remember Harry Markopolos? He was the whistleblower who alerted the Securities and Exchange Commission to Bernard Madoff's scam. The guy who was ignored by the SEC until it was too late.

Now, the New York Post reports that Markopolos is warning that there are evil-doers in the unregulated $600 trillion credit default swap market that will make Ponzi scheme perpetrators like Bernard Madoff "look like small time."

In a speech to the faithful at the Greek Orthodox Church in Southampton, he predicted there would be major scandals that will be bigger than Madoff.

"To put it in simple terms, it is like buying fire insurance policies from five different insurance companies on your neighbor's house and then burning down the house," Markopolos said.

Mary Schapiro and the crew at the SEC should take notice and do something. They wouldn't want to be caught napping this time.