The Madoff Scandal was the largest Ponzi scheme in history, operated by Bernard Madoff, which resulted in estimated client losses of nearly $65 billion.
A Ponzi Scheme is a fraudulent investment scam promising high returns with little risk to investors. The scheme pays returns to earlier investors using the capital of newer investors rather than from profit earned by the operation. Named after Charles Ponzi, it eventually collapses when there are no new investments to cover withdrawals.
