Bernie Madoff

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Definition of 'Bernie Madoff'

Bernard Madoff (born April 29, 1938) is an American former stockbroker and investment advisor who is serving a 150-year sentence in federal prison for orchestrating a massive Ponzi scheme that defrauded thousands of investors out of billions of dollars. Madoff started his career in the 1960s as a stockbroker at the brokerage firm Bache & Co. He later founded his own firm, Bernard L. Madoff Investment Securities LLC, in 1960. Madoff's Ponzi scheme began in the early 1990s and continued until it was revealed in December 2008.

Madoff's Ponzi scheme worked by promising investors high returns on their investments. Madoff would then use new investment money to pay off existing investors, creating the illusion of a successful investment business. In reality, Madoff was using new investment money to pay off old investors and to fund his own lavish lifestyle.

The Ponzi scheme collapsed in December 2008 when several of Madoff's investors began to question the high returns that they were being promised. Madoff was arrested in December 2008 and charged with securities fraud, wire fraud, mail fraud, and money laundering. He pleaded guilty to all charges and was sentenced to 150 years in prison.

Madoff's Ponzi scheme is considered to be one of the largest financial frauds in history. The scheme cost investors an estimated $65 billion. Madoff's Ponzi scheme has also had a significant impact on the financial industry. The Securities and Exchange Commission (SEC) has been criticized for failing to detect Madoff's Ponzi scheme. The SEC has since made changes to its regulations in an effort to prevent future Ponzi schemes.

Madoff's Ponzi scheme is a reminder that even the most sophisticated investors can be fooled by a Ponzi scheme. It is important to do your research before investing in any financial product. You should also be wary of any investment that promises high returns with little or no risk.

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