Madoff

Example:The Ponzi scheme orchestrated by Bernard Madoff claimed to generate steady returns for investors, but in reality, it was a massive fraud.

Definition:A fraudulent investment scheme that pays returns to participants from the funds contributed by subsequent participants, rather than from any actual profit generated by the individuals controlling the scheme.

Example:Many investors lost their life savings when Madoff’s Ponzi scheme was exposed.

Definition:A person who puts money into a business, venture, or other enterprise with the expectation of gaining a financial return.

Example:Madoff went to prison for running one of the largest financial frauds in history.

Definition:The crime of deceiving someone in order to gain an unfair or unlawful advantage, especially in a commercial context.