OK for people to invest in risky ventures as long as they know the risks .. Did these investors not asked how the returns were being generated or where the generated profits were coming from?
Any investor in any venture knows the risks, from the broker, to the banker...

Raj, Harrow, England

These people walked into it with their eyes full open
No body was squealing when they were pulling down 15-20% returns year after year, As soon as the scheme went belly up, everybody is crying victim, want their money back, blame SEC...
Sorry, it doesn't work that way.
Madoff walks a free man

NMB , California, USA

It amazes me how many people are "happy" that some people got conned out of billions just because they were wealthy in the first place. For all we know this is hard earned money of US citizens who have worked hard and done well for themselves...too much jealousy and biterness in the world today

Alan, Hong Kong,

"Face ruin"? A loss of wealth is not facing ruin. Let's get some perspective here. Being left with a few million, or a few hundred thousand, or even a few thousand is not facing ruin.

Fail to carry out due diligence and ask how the rewards can be so high, when nobody else does it, at your peril.

Laura Roberts, London, UK

I fail to see how what he did is any different to every bank in the world.

We are all being paid interest with somebody else's investment. The "run on the bank" is just people wanting their money back all at the same time; same with Madoff.

Bush should logically bail him out, surely?

Tom Franklin, London, UK

Darren, Los Angeles, USA

Thats correct, Social Security is a huge Ponzi scheme worth hundreds of trillions of $/£. The US Government believed that it will default on its debt in 2013 - this is before the 'credit crunch'.

Anthony Lester, Birmingham,

How many more such 'skeleton in the cabinet' schemes is the Wall Street still covering? With bubbles bursting one after another, what will be left of the so-called American dreams?

Wu Guangqiang, Shenzhen, Guangdong, China

Kudos - This is more information presented more clearly than I have seen on US news sites. There is so much stress for just the working people right now it's just horrible.
To US, UK, and the world- a more peaceful holiday and New Year.

sscape, Durham, US

what suprises me is the antisemitism (uncalled for) and the way rich people have been pilloried as if we dont want to be succesful and rewarded. secondly how many black box hedge funds are doing this? is it a house of cards ?50 could unravel to $500 Billion by the year end (ie 10% of the hedgefunds)

stephen, london,

No One Could Say It Better Than ; Richard H. King, Lubbock, TX has already said it in these replies and comments..
For a second time.

HOW IS THIS ANY DIFFERENT THAN (ANY) OTHER (GOVERNMENT) PROGRAM??

Please tell me..

Rick, Des Moines, USA

sorry you misssed the largest ponzi scheme....its called social security and its still going on. The only difference is that it pays lower returns the more you "invest". Way to lead by example, oh, Politicians don't contribute?

Eben, Baltimore, USA

Really, how is this different than any government program?

Richard H. King, Lubbock, TX

My family has belonged to the PBCC for many years. The vast majority who belong are decent and charitable. I never saw the "greed" so many writers like to imagine. Many are company owners that helped build America. The younger breed may not be of the same quality but I cannot say with certainty.

barry, Toronto, Canada

a lot of the investors were wealthy "sophisticated investors" quite an oxymoron, given the result

jimmy, richmond, usa

Barnum said it best "There is a sucker born every minute and two to swindle him". You do not invest unless you are willing to take a loss. There are no guarantees. But in this case the way it was set up it was guaranteed that someone was going to get the short end of the stick.

Richard, Bullhead City, AZ, USA

Simply terrible!! I imagine some of the victims of this thief are now down to their last billion as result of his criminal actions.

Steve, PALM BEACH, FL, usa

Maybe the second largest Ponzi scheme. You're forgetting the sub-prime mortgage sceme. That also worked wonders until there were no more buyers

Joe M Brown, Canandaigua, NY, USA

Let them eat cake!

Mike Tylka, Jerome,

"a person of integrity" - I beg to differ!

Bruno, Lynchburg, Va, USA

Time for another ill-advised bailout, I see.

Damien Kane, Washington, DC,

I was thinking the same thing as John in Cambridge, MD, isn't that what our social security system is? Except the "returns" aren't abnormally high.

Kate, Gainesville, FL, US

Lots of "blame the victim" in this forum.

Mike, Houston, United States

"Madoff is small fry, his scheme will only bankrupt a few 100 families " Andy D, London

Socialists' analysis are always faulty/arising from class envy. ALL the families/services dependent upon the now bankrupt successful are in danger of bankruptcy. This is bad, Socialism worse. Obama? God help us.

Daisy, NY, USA

There are too many greedy opportunists in Wall Street trying to sucker/con and game each other in huge investment schemes and questionable returns. The system is utterly broken and hijacked by people like Madoff who does not care a wit about everyone in Main Street USA, only loads & loads of cash.

Rob, Columbus, USA

Oh really?
The S.E.C is on top of it all, as usual.The rumors in the financial street were there for all to hear, but our enforcement people must be pre-occupied.
They said it, $50 BILLION!!
Not a second to spare, some one call the Chief of Detectives, Inspector Clousou?.........

Dewayne Hudson, aurora, usa

What happens when the Chinese stop paying for a (bankrupt) USA? What happens if the Arabs withdraw their investments (up to 3 trillion US). How come the US thinks it can spend 600bn on the military and let others pay for it.

The chicken are coming home to roost

T Andre, London, uk

Dan Horwitz says, Mr Madoff is " a person of integrity", this reminds me of the sentiment employed by the adolescent accused of murdering his Mother and Father. The accused, and subsequently found guilty young man, appealed to the Judge, " to show mercy on the grounds that he was now an orphan".

Stephen May, Guildford, England

Poor people like us couldn't even affort to get in the front door to Madoff's ponzi scheme. This was for the super rich. Now they're not. And the government had better not bail them out.

Randy, Rogers,AR, US

Yeah. If the greedy ultra-rich who live in luxury on the north shore in my neighborhood get a bailout from the government, there will be rioting. I'm undecided on whether I'll be one of the rioters, but this will be the last straw.

Jim OSullivan, Long Island, New York

Maybe there is a "Ponzi" bailout. Why not everybody's getting in on it.

Dennis Sullivan, Dallas, U.S.A.

There are some uninformed people who are posting here who are unaware that hedge funds are private, and are NOT regulated by the Federal government. Hedge fund investments are not available to the general public, and are sold only to investors who meet a high net worth and income threshold.

Kimo, Kilauea, Hawaii

Anyone here that says "I'm shocked, how could this go on for so long?" really is in for a surprise. This is our social security program. Social security is paid and schemed in the same way. Pay the old investors an unsustainable % return with the new investors money. Social security is a Ponzi.

Darren, Los Angeles, USA

"Ira Roth, from New Jersey, said that his family had $1 million invested, "

I'll bet that investment was in a ROTH IRA.

harlan, indy,

If it is too good to be true...then it is not true. There is a sucker born every minute. Everybody wants to get rich quick. The only people that acquire wealth and keep it are the people who work the 16 hour days and hoard every penny.

Mark, Jacksonville, US

When will people learn that if something looks too go to be true - it probably is

James, Doncaster, UK

Looks like the Country Clubs People of Palm Beach and Long Island might have to find Jobs and not live off Old money Wealth.

Troy, Iowa City, USA

SIPC will cover 500k including up to 100k in cash for fraud i believe.

jaxon, Boston, USA

He's probably not the only guy doing this. Watch the dominoes start to fall.

Eric, Burbank, USA

How can peple be glad other people are hurting here? "Oh yeah they deserve it" maybe these are people who worked their butts off and now are ruined along with their families.
I feel horrible for these investors.
Don't wish bad on people, only the best because it all comes back to you!

David Powell, Ocean City, New Jersey , USA

Will all of Mr. Madoff´s duped investors now go to Washington and ask/expect to get bailed out? Nothing would surprise me these days.

Jeff Mason, La Paz, Bolivia

perfect man to head the social security administration

charles bonow, new lenox, u.s.

Ira Roth from NJ????. Is that name someones idea of a joke. He would be listed in the phone book as Roth IRA.

Steve, Riverhead, NY, USA

don't put all your eggs in one basket....

Bill, Columbus,

Where were the auditors? I wouldn't invest $10 in an organization that was not being audited by a major firm.

Dave, Omaha, USA

All he has to do is ask Nancy and Harry for a bailout. What's the big deal?

Tom, Roosterville, USA

Well there you go, if it looks to be good to be then it probably is to good to be true!

And I don't think it will kill people with more money than they need to loose some of it.

Ceri, Southampton, Hampshire

What this proves is how ineffective US regulators are. As former president of a stock brokerage w/ $3 billion in client assets , I saw 21 year old finance grads with zero experience leading audits? Come on! Thanks to a broken regulatory system, $50 billion hedge funds aren't even regulated.

PBP, Orlando FL, USA

Unbelievable, where are all the reulators and audits that are legislated to prevent this type of crime -- seems to me they are guilty also!!!

J Gable, Doylestown, USA

That what happens wen wall street is blindly trusted on. Same with subprime fiasco.

Heri Gin, Toronto, Canada

how come he's still got the coat on his back? where's the justice?

sara, leigh on sea, england

You can't cheat an honest man.

Pete, Downers Grove, Illinois, USA

All this financial stuff is nothing but gambling anyway. Poker. Sometimes you win, sometimes you lose. Finally this guy's bluff got called. Unfortunately everyone loses. All behind the love of money and all things that shine. Everything that glitters ain't gold.

Jason, Philadelphia, USA

This takes the focus off the big scandal that just erupted in Chicago if he has friends in congress he'll be okay if not he's finished.

Meg, washington dc, USA

While some of those people may have inherited their money, a lot of them worked hard for it too. Regardless, no one deserves to have their life savings wiped out by theft or deciet. Shame on you people for rejoicing in the pain of others. Just remember that what goes around comes around!

Cristie, Valdosta, USA

This is "government by new york".

i.e. No nbeed to regulate, so long as the money goes through the hands of new yorkers and their liberal clique.

Liberal with the money of other persons that is...

Charles, london, UK

millionaires in a panic? I LOVE IT!!!!

Tim Ward, Canyon Lake, USA

Someone should make a movie about this.

Kate, south bend,

When woody allen said he was an investment advisor, she asked, "what exactly do you do? He replied, "I invest people's money until yhere is nothing left". This is the Madoff school of Investments.

Sal Fusco, Sun City, Arizona, USA

Is this the Higher Power's way of weeding out the truly irritating?

Marti Klever, Las Vegas, USA

Ira Roth? as an investor. Madoff as in made off with their money. How is this not a skit for a third rate comedy show.

Anne Stepaniak, Cincinnati,

Never hand over your money to others to manage or invest, do it yourself. It's not that difficult. Remember, monkeys picking stocks at random usually beat professional stock pickers. Google it if you don't believe me.

jeremy, san diego, USA

"What can you expect out of a system with no regulation?"
carol, wellington, usa, ancient, as yet unanswered question for you: Who guards the guardians?

Morgan, New York,

I was thinking the same thing(IRA Roth). Sounds made up.

dave, hickory,nc, usa

How does a person who stole 50 BILLION dollars, who is "broke" manage to put up "bail" of 10 million dollars? Looks like the joke just keeps getting bigger and bigger. By the time he serves a day in jail, he will probably be dead of old age.

looks like some fire sales on Palm Beach property.

Ronald Mason, Dublin, United States

Despite faults, UK and Australian governments have ensured that sensible regulation offers protection from these criminal scams. US corruption has wrecked its economy, which is their business, but it's tried to wreck ours, too. Give thanks that you're not in the US, currently, a real basket case.

Poppy, Melbourne, Australia

Madoff's scheme is a microcosm of the entire U.S. financial sector. For quite a long time now, the allure of fabulous wealth very quickly and without effort has swollen the bank accounts (not to mention the egos) of the so-called elite with naught but hot air.

J. Brandon Loberg, San Francisco,

Greed; pure and simple.

Luigi, Tampa, USA

The whole world is going to hell in a handbasket. If you think that this can't happen to anyone, anywhere--think again. It can happen with any retirement or investment account. If someone wants your money they will just take it.

Trent, Jackman, US

There's no questions that there will be so many more instances of this coming out of the woodwork due to the current situation. If no one has the liquidity to invest anymore then all scheme's like this are sure to come to a head.

Dom, Manchester, UK

For those of you who think the end is near, don't stock up on canned goods and toilet paper just yet. Remeber the dot.bomb calapse; followed by September 11th; followed by the anthrax scare; followed by the last wall street scandels. After all that, the market returned. Start buyin and Keep smilin!

Jim, Chesapeake, VA, USA

That's amusing Suren, do you feel the same way about government? Social Security is just as a giant Ponzi scheme that uses today's workers to pay of the previous generation's return.

Chad, Chico, CA, USA

How did Madoff manage to get away with it for 40 years?
Can't be that easy to fool auditors.

mike, london, england

Look if you are a "rich" socialite, a million dollars is a drop in the bucket. Unfortunately, you have to lose at least a cool billion to be consider for TARP funds.

tahutch, San Francisco,

This has nothing to do with America, so stop your attacks on your great country. We Australians don't attack our country because there are a few crooks around. There obviously must be greater regulation of the financial system across the world.

Peter, Brisbane, Australia

As it stands the ultra wealthy have been robbed. Now after they get their bailout the theft will be passed down to the common person through devaluation of thew currency through inflation, more government debt, and higher taxes. It is time for a revolution, no doubt about it

aksehl, Boston, USA

name one socialite at least.
nonsense.

Tony B., New York, USA

to Andy Dyer. So the Chinese want to cash in their dollars? Let them, it is just paper and soon will be worth only that. It was foolish of them to keep their currency so low and give us junk for nothing, no we are doing the same thing and they'll have...nothing.

aksehl, Boston, USA

Why is Madoff facing criminal charges? He's just doing what congress has been doing to social security for decades!

ss, atlanta, usa

All I can say is, "Wow". Sounds like those that were rich wanted to get richer. Now the fall is going to be very painfull for them.

Chuck, Jacksonville, AR., USA

Raoul
No - everything is NOT insured by the FDIC - only funds invested with a participating financial institution which is covered by FDIC regulations.

F. W. Klock, Dallas, USA

hes not a bank so the money wasnt insured by the fdic.

Tom, norfolk,

"panic spreads across the country clubs" Huh?
I feel sorry that these people may have to sell one or two of their polo ponies, now.

Brady G., Dayton ohio, usa

The FDIC doesn't insure investment accounts at all, and certainly not hedge fund accounts. The money is gone.

Mark, Greeley, CO,

@Raoul
The FDIC does not insure brokerage accounts. It only insures deposits in commercial banks, which agree to be regulated.
Besides, FDIC protection is optional for banks, and a scam artist will not likely seek regulation.
In this case, investors may literally get nothing.

JImmy Zhou, Fairfax, USA

The concept of wall street or stocks,ie that some one else will make fortunes for you is fundermentally a fraudulent scheme. No matter which way you look at it. I simply do not believe in publicly traded companies.

Suren Ekanayake, Kingsville, USA

Too bad, for once in their lives these socialites might have to get a job.( I do not consider partying/skiing/yachting 24/7 as work.). Its never too late to become a productive member of society. Tough love.

Clint, Manchaca, US

I guarantee you that this is the beginning of the end of America.

Jay, Pittsburgh, PA,

Trust no-one. Believe nothing. Question everything. The government is not here to protect us from crime, it is hear to regulate it. Buyer beware!

Brunworth, Richmond,

Shouldn't this company have been audited?

luke, woking, uk

Socialites?

Harry L. Hogan, Washington, D. C.,

The class envy here is funny. Consumers are jealous of producers. Producers despise Consumers. The vast majority of the people who got ripped off from this thief were not producers, just beneficiaries of Producers. That is why they got ripped off. Socialites are consumers, like you lowly consumers!

Steve S, Greenwood Village, USA

FDIC insurance usually just covers money in banks, so these investors will not benefit from FDIC.

Donna Poteat, Salisbury, United States

Investments are not insured. Bank accounts are (and now some money market accounts for a short period). These would be uninsured investments (unless the Government throws some bail out money this way also).

Jeff, Philadelphia, US

Sorry, the FDIC insures dollars held in the banks, not dollars invested with other investors who give the money away or spend it as in this instance. Those dollars went away to what is now called "MONEY HEAVEN" and those who invested in this guy can say "Bye, Bye" to their dollars.

ED, Lamoni, USA

I have sympathy for any innocent investor who get swindled...socialite or otherwise. I just hope Mr. Madoff doesn't get the usual white collar country club treatment.

Bill, La Quinta,

Yeah, but doesn't the FDIC insure the first $100,000 now $250,000? It can't be that bad!!

Raoul Thomas, Seattle , USA

I agree it was moved not lost, now those "profits" by those earlier in the Ponzi line were probably lost somewhere.

John Booth, Midlothian, VA, USA

Easy come, easy go.

Mark, Miami, Florida

Hard to feel sorry for a bunch of multi millionaire socialites who thought that their money and connections allowed them to play in a pool which excluded the ordinary folks. No bailout here!!!

pete , new city, usa

It's all fun and games till your the last fool with the bag. Be the second to the last fool and you'll be rich!

Terry, Vegas, USA

HIS Sons turned him in..his best investment.

howardhofelich, KAILUA KONA , Hawaii

sounds like our social security system

John, Cambridge Md.,

sounds like the sons must have known what was going on for 20 years and the father agreed to take the fall since the bottom was falling out

mildred, rochester, usa

Never trust the government to protect you.

Richard, Indianapolis, USA

I have no love for the "Wealthy" but I wouldn't wish this on anyone.

Vaughn Michael, Saint John , Canada

No different than the Ponzi scheme known as "social security" established by Franklin Roosevelt, the father of modern socialism, and exploited by politicians of all stripes for the purpose of buying votes.

martifr, sf, USA

'paid investors with money that wasn’t there'
That seems to be the complete sum up of the whole financial system. The money was not there but it is now because the taxpayer has handed it over. But in 5 years it won't be there again so where does it keep going?.

rob, ashbourne, uk

A French philosopher once said-"Behind every fortune is a crime"

Gino, New York, USA

Joe from Philly, I know you must be being facetious, because I've lived over 70 years and can't remember a time when anyone in this Country has asked me to grease a palm. When I lived overseas however, it was just de rigeur in many circumstances: not getting services already paid for once!

clemmieo, West Liberty, USA

If it sounds too good to be true, then it probably is.

Tom , Audubon, USA

Some of these people worked 80 hours per week; founding companies, creating new technologies, medical procedures, cures for diseases. They created companies and jobs, paid their taxes and donated many millions to charities.

Most of these investors earned their money. No one deserves to be mugged.

Nan, Omaha, NE, USA

Frank, I am a naturalized citizen which quiet possibly makes me even less tolerant of anti-americanism than you. But for God's sake where do you see a single cheap shot here? Point one sentence that anything beyond reporter's doing his job. R u saying they wouldn't cover it if Madoff was English?

Ivan, Boston, MA, US

If it's too good to be true, it is, period. To every scammer there is a dupe, if you take the time to research and remain skeptical of such swindlers this will never happen to you.

Razimus, Reykjavík, Iceland

Greed and fear are what runs a market - sounds like these socialites were a bit greedy

If the return seems too good to be true you should ask how it works

Bill, Sacramento, USA

it all comes down to greed. If people weren't so greedy, then things like this wouldn't happen.

Fred, Northridge, usa

Madoff is small fry, his scheme will only bankrupt a few 100 families.

The worry is that the entire American economy has been a Ponzi scheme, printing money at the rate of $700 billion a year to pay for imports. What happens when the Chinese want the benefit of years of saving?

Andy Dyer, London, UK,

This sounds like American Social Security system too, which will collapse in not too distant future.

Henry, Chicago, USA

To Frank and Joe (USA), I do not see why you are being defensive. There is not a single shread of xenophobia in either the article or the comments. However, your attitude does highlight some US nationalist insecurities, which leads you all to believe that your nation has never done anything wrong.

Stuart, Sheffield, UK

A present day Mr Merdle! (Charles Dickens, Little Dorrit)

John Trimmer, Dunstable, England

FWIW I still think America is a great country and I'm English, not a "Euro".

The prosecution of Madoff, Enron et al is an example of its excellent judicial system; no consolation I know to those who have lost large sums. For them the lesson is: read your statement, follow the cash, trust but verify

Alan, London, England

What can you expect out of a system with no regulation? Ask your Senators what happened to the regulations that were put into law following the Great Depression and they will tell you that they were taken off of the books. Then ask them the year that this occurred. It was in your lifetime.

carol, wellington, usa

What staggers me is how many years this fraud was able to continue undetected. Whatever happened to the regulatory bodies who are supposed to pick these things up? It brings into question the way in which the financial services industry in the US (and probably elsewhere to) is regulated.

Miriam, Bristol,

David, have you ever seen a poor person hire another person for a job? Saying, you wish all rich would loose their money is utterly insane. Doesn't work that way. Don't like the situation you're in? Get busy and change it!! It's up to you!

Mike, Baker, USA

Don't worry, the Government will bail them out, it's only 50 billion.

sam, sarasota , us

If it seems to good to be true......

John Collins, Furlong, PA, USA

Amazing how Euros continue to take shots at Americans, as if American crime is the ONLY crime on this planet.

Frank, Long Beach, USA

Its called justice - Rich fools getting what they deserve. I hope they all those there money!!! or Revenge of the middle-class.

David, Stamford, ct

How many others are out there?

Michael F., Colonia, NJ, USA

What goes around comes around......karma

kit, seattle, usa

The damn shame is that the entire capital and bond markets are a ponzi scheme. You buy a stock, hoping that some other sucker will be there to buy it from you at a higher price. You buy a bond, hoping that the company can roll it over with some other sucker so that you can get your money back. GOLD

Matt Dollar, San Jose, CA, USA

Not all of us are proud of what has happened to our (once great) nation, Richard.

However, Mr. Madoff was indeed living off the fat of the land. And now many of these fat people will have to go on an enforced diet.

Karma is the wheel that keeps on turning, keeps on taking, and keeps on giving.

Mitchell, Charleston, USA

Methinks there's a bit of exaggeration on display with the claim that some of the country's wealthy were "facing ruin." Not impossible, mind you, but most people wealthy enough to be in the Palm Beach/Hamptons crowd aren't going to entrust the bulk of their fortunes to a single hedge fund.

Jasper, Boston, USA

our whole economic system is a Ponzi scheme. Tell me how the SS system is different that what this guy got busted for?

Its all a house of cards and its crashing down.

gregg, texas,

Now the FBI should go after Bill Clinton (he could not have gotten over a hundred million dollars from book deals or consultant fees) and the Wall Street and banker thieves!
My opinion is Bill Clinton got paid for those trade deals that sent the good paying middle class factory jobs to China!

lyn, st .louis, USA

You're right, the only people who lie to make money are Americans. No European, Asian, Hispanic, African, Austrialian, or any other group of people have ever been found to be corrupt.

Joe, Philly, USA

If it can be reported $50bil is "lost", how was it lost? If it was taken from some accounts to pay other accounts it wasn't lost only moved.

However, if the money went into investments that lost value than it was lost.

Could some details of how this money actually disappeared be provided.
Thank

Anthony Bruno, Cary, NC, USA

I don't know much, but I have heard the term DIVERSIFY!

Janice, Texas, USA

He made a $10 million bail so he can't be that bad off...himself.

CPMJohn, Petaluma, US

Americans are proud that they are the biggest and best .

A mid blowing amount - and it doesn't sound as if Mr Madoff was living off the fat of the land.

Richard, Bucharest,