Largest Ponzi fraud in corporate history

According to a criminal complaint filed on 11 December 2008 by the US Attorney’s Office and the Federal Bureau of Investigation, Bernard Lawrence Madoff (USA), a former chairman of the NASDAQ stock market and hedge fund manager, told at least three employees that he had operated a giant “Ponzi” scheme and that the scheme had lost investors US$50 billion (£35 billion). He was charged with a single count of securities fraud but the US Securities and Exchange Commission has also filed a separate civil law suit. The fraud came to light as investors, worried by the world’s economic crisis, tried to withdraw funds. It is the biggest fraud in corporate history and, if found guilty, he could face up to 20 years in prison and a fine of US$5 million (£3.5 million).