Maddof affair

[jpm1]

Did you see that ? 50B $ and counting . People over the world ruined from renown fund managers to little investors even S. Spielberg was hit . Some even suicide

[AVGWarhawk]

It was an old scheme that he got away with for 10 years. It is very simple really, tell investors of 15-20% returns. How to generate these returns, get more money from new investors. Worked great until the well dried up a few months back. Investors wanted to pull their money from the markets. Guess who did not have the money? Madoff. Guess who went to his employees and brothers letting the cat out of the bag? Madoff. He has ruined many a life. A real piece of work here. Not to mention SEC sat on their thumbs over a year knowing he was up no good.

[TarJak]

Yep a realatively simple pyramid or ponzi scheme dressed up as a valid investment scheme. Works great for early investors who pull out before everyone else wants their money at the same time which is when the whole scheme collapses.

http://en.wikipedia.org/wiki/Ponzi_scheme