Madoff investment scandal Madoff investment scandal The Madoff investment scandal was a major case of stock and securities fraud discovered in late 2008. In December of that year, Bernard Madoff, the former NASDAQ Chairman and founder of the Wall Street firm Bernard L. Madoff Investment Securities LLC, admitted that the wealth management arm of his business was an elaborate Ponzi scheme. Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1960, and was its chairman until his arrest. The firm employed Madoff's brother Peter as senior managing director and chief compliance officer, Peter's daughter Shana Madoff as rules and
Pyramid scheme of it and giving the rest to others who had invested in the scheme earlier. Thus, schemes such as the Anubhav teak plantation scheme (teak plantation scam of 1998) in India can be called Ponzi schemes. Some Ponzi schemes can depend on multi-level marketing for popularizing them, thus forming a combination of the two. Some multi-level marketing (MLM) companies operate as pyramid schemes and consumers often confuse legitimate multi-level marketing with pyramid schemes. According to the U.S. Federal Trade Commission legitimate MLM, unlike pyramid schemes: Pyramid schemes however "may purport to sell a product, but they often simply use the