The Man Who Figured Out Madoff's Scheme - CBS News


It has been two and a half months since Bernard L. Madoff was picked up and charged with what is believed to be the largest financial fraud in history. Yet we still don't know much more about the alleged $50 billion scam than what Madoff initially told the FBI agents who arrested him. There are still no indictments as federal prosecutors continue to unravel the case and try to figure out exactly what happened and who was involved.
BERNIE MADOFF PONZI SCHEME: Victim List Grows


Questions are being raised about whether Madoff actually executed any trades at all or whether the whole scheme was a version of a virtual reality game.
Bernard Madoff - Wikipedia, the free encyclopedia

On December 10, 2008, Madoff allegedly told his sons that the asset management arm of his firm was a giant Ponzi scheme--or "one big lie." They then passed this information to authorities.
Rather than offer high returns to all comers, Madoff offered modest but steady returns to an exclusive clientele. The investment method was marketed as "too complicated for outsiders to understand." He was secretive about the firm's business and kept his financial statements closely guarded.
Madoff was a "master marketer", and his fund was considered exclusive, giving the appearance of a "velvet rope". He generally refused to meet directly with investors, which game him an "Oz" aura and increased the allure of the investment.
The SEC has been accused of missing numerous red flags and ignoring tips on Madoff's alleged fraud.
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Hearing this on the News in December and watching it on "60 Minutes" last night, this is just too overwhelming to take in how one man could perpetuate such fraud!