Leeds Morelli  & Brown: Legal Blog

Prominent financier Bernard L. Madoff has been accused of orchestrating what may be the largest Ponzi scheme in history.  Operating under the guise of a Hedge Fund, Madoff ran a classic Ponzi scheme, which involved paying off earlier investors with money from new investors.  Due to markets declining, the scheme unraveled after many investors who lost money elsewhere sought to withdraw money from their investments with Madoff.  The scheme, which allegedly ran for over a decade, is estimated to be a $50 billion loss.  High profile clients of Madoff include Steven Spielberg, New Jersey Senator Frank Lautenberg, real estate magnate Mortimer Zuckerman, owners of the New York Mets, a former owner of the Philadelphia Eagles and the chairman of GMAC.  Read the rest of this entry »