Madoff Ponzi scheme: decades of returns that never existed

Bernard Madoff ran the largest Ponzi scheme ever uncovered through his New York investment firm, paying "returns" to existing clients with money from new ones for decades. When he was arrested in December 2008, client statements showed about $64.8 billion in balances that did not exist. Investors had lost roughly $17.5 billion in principal.

Madoff pleaded guilty to 11 federal felonies in 2009 and was sentenced to 150 years in prison. He died in prison in 2021.

Recovery took more than 15 years. The court-appointed trustee recovered about $14.7 billion for the firm's direct customers. Separately, the Justice Department's Madoff Victim Fund paid more than $4.3 billion to 40,930 victims around the world, completing its final distribution in December 2024.