Former Employees of Ponzi Scheme Master Mind Were Unaware of Fraud

Bernie Madoff was the head of what the New York Times calls the largest Ponzi scheme that has ever been recorded. These types of financial schemes require investors to recruit new investors so that there is a continual flow of cash and often fail when individuals want to get the money they invested in the scheme back. There are a variety of different kinds of Ponzi schemes that residents of Ocean County and people throughout the U.S. are attracted to due to their promise of significant financial gains.

Madoff's historic scheme

A Ponzi scheme is a type of investment fraud that entices investors to put funds into the scheme and attracts new investors by giving off the appearance that a legitimate form of business is going on and that early investors are profiting. Common characteristics of these schemes include:

  • The possibility of high returns with little or no risk
  • Investments that are not recognized by the Securities and Exchange Commission
  • Sellers of the investment that are not licensed or registered
  • Terms which are secretive or complicated
  • Difficulty for investors to receive payments for their contribution

Many of these characteristics were present in what is known as the Bernie Madoff Scandal. This scandal was headed by Bernie Madoff, the head of an investment company that stole $50 billion from investors. In 2009, Madoff plead guilty to 11 felony charges and was sentenced to 150 years in prison that same year, according to CNN.

Unaware employees

The lawyers of many of Bernie Madoff's employees are telling the jury that the employees at Madoff's investment firm were unaware that any sort of fraud was taking place, says nj.com. For example, one of Madoff's employees that first began working for the investment firm in the early days of the firm states he was blindsided by Madoff and only did what he was told to do.

This specific former employee of Madoff's signed checks for the firm and oversaw the general ledger of the company. The reason why this employee did not get rid of documents or hid from authorities after Madoff was originally arrested in 2008 was because he did not know the fraud that was occurring at the company he worked for.

Besides this specific employee, 35 other individuals that worked at Madoff's firm are also being investigated for their involvement in the firm. However, none of them have pleaded guilty or claimed they knew that any illegal activity was taking place.

If you are being charged or investigated regarding your involvement in a Ponzi scheme, contact an experienced attorney that can defend your legal rights.

CLICK HERE FOR A CASE EVALUATION