The Wizard of Lies

Bernard Madoff founded his company on Wall Street in the early 1960s, growing it into one of the largest investment funds. He earned a reputation as a successful and influential financier, broker, and philanthropist. His operation would shape his family's life for decades.

Over time he employed his sons, Mark and Andrew, and relied on his wife Ruth as part of the operation. The family-run business presented an image of stability and trust to clients. This close access would later worsen the fallout when fraud was exposed.

In the 1970s, Madoff admits he had been operating a Ponzi scheme for years. He used new investors' funds to pay returns to earlier clients, masking true profits. The scheme seemed legitimate for decades, helping the firm grow into a financial powerhouse.

In 2005, investigators asked for Madoff's Depository Trust Company (DTC) account numbers to verify assets. Madoff claimed he did not want to share them but complied in an unsuspecting way, saying the SEC could call DTC to verify assets. No such verification phone call was made, allowing the fraud to remain hidden.

As the 2008 Great Recession began, clients rushed to withdraw their money from the fund. Madoff realized he did not have the funds to return, and the impending exposure threatened to destroy his operation. He began telling his wife and sons about the Ponzi scheme, setting the stage for a final reckoning.

Lawyer Martin London, Mark Madoff's father-in-law, advised Bernie Madoff's sons to turn their father in to the authorities. This counsel reflected the collapse of the facade and the necessity of legal exposure. The family faced the moral and legal implications of reporting him.

Bernie Madoff's sons were left with no choice but to turn him in to the authorities. The revelation led to rapid investigations and the unraveling of the long-running fraud. The case would become one of the most infamous financial crimes in history.

Following the exposure, Madoff and his wife attempted suicide by taking Ambien, but did not die. The desperate act underscored the personal toll of the scandal on the family. Authorities would proceed with arrests and charges soon after.

Madoff was arrested and later pleaded guilty to fraud charges. He received a 150-year prison sentence for the magnitude of his crimes. The case became a landmark example of white-collar crime and its devastating impact.

While in custody, Madoff admitted to FBI agents that he had been operating the Ponzi scheme since the 1970s. The admission framed the scope of the deception and confirmed long-held suspicions. The confession reinforced the narrative of a deliberate, unrepentant fraudster.

In 2009, Harry Markopolos testified before the U.S. House that he believed the firm was a fraudulent Ponzi scheme. He argued that the gains never fluctuated like true market profits. His testimony added pressure on regulators to scrutinize Madoff’s operation.

Clawback lawsuits were filed against Madoff's sons as beneficiaries of his fraud. The suits sought to recover funds tied to the scheme and to compensate victims. The legal battles intensified the scandal's toll on the family.

Mark Madoff committed suicide amid the aftermath of the collapse, and his brother Andrew later died of cancer. Ruth distanced herself, vowing not to visit Bernie in prison and blaming him for Mark's death. The double tragedy underscored the personal cost of the fraud on the family.

In a prison interview, Bernie Madoff refused to take responsibility for ruining his victims' lives. He suggested others had let him take advantage of them, shifting blame. He ended the exchange by asking, 'Do you think I'm a sociopath?'