IntroductionBernie Madoff began his career as an investment broker in 1960, where he legally bought and sold over-the-counter stocks not listed on the New York Stock Exchange (NYSE). From the 1960s to the 1990s, Madoff's success and business grew dramatically, mostly through a close circle of investors and friends he met through word of mouth. In the 1990s Bernard L. Madoff Investment Securities traded as high as 10% of the NASDAQ on any given day. With the success of the securities business, Madoff started an illegal money management business, promising his investors consistent returns of 10-12%, unheard of returns at the time, which should have made most investors realize that something was wrong. it was going. wrapped in the sense of exclusivity and high returns, that no one questioned Madoff or his strategy of buying stocks and trading options on these stocks, his way of limiting potential loss. In 2008, as changes in the economy intensified, investors began demanding payouts for their investments, and Madoff became increasingly desperate for new funds. His strategy began to falter and the truth of his actions began to spiral out of control. Bernie Madoff, once a legal investment broker, is reportedly known for committing the white collar crime of all time, a Ponzi scheme. Similar to a pyramid scheme, a Ponzi scheme uses money from new investors to pay off older investors. The term Ponzi scheme was developed with the first known scam artist in such an attempt, Charles Ponzi, who in 1920 advertised that he could pay a 50% return on investments in just 45 days. As individuals throughout New Jersey and New England began to invest, and sometimes mortgage their homes to do so, Ponzi was the... center of the paper......ec-biz-wall-cx_lm_1223madoff.htmlRothfeld , M. (2010, July 26). The Wall Street Journal. Retrieved December 1, 2013, from "Madoff Investors Brace for Lawsuits": http://online.wsj.com/news/articles/SB10001424052748704719104575389141620473502Sandomir, R. &. (2012, March 19). The New York Times. Retrieved November 25, 2013, from Mets owners agree to settle Madoff lawsuit for $162 million: http://www.nytimes.com/2012/03/20/sports/baseball/mets-owners-pay-162- million-to -settle-madoff-suit.htmlSmith, A. (2011, January 13). CNNMoney. Retrieved November 25, 2013, from Madoff victims who won $7.2 billion from Picower estate: http://money.cnn.com/2011/01/13/news/companies/madoff_picower_court/US Securities and Exchange Commission . (2012, April 2). The Securities and Exchange Commission. Retrieved November 30, 2013, from Post-Madoff Reforms: http://www.sec.gov/spotlight/secpostmadoffreforms.htm#revitalize