The Madoff Affair, or "The Great Ponzi Scheme," is considered to be the largest financial fraud in U.S. history. Orchestrated by Bernie Madoff, a prominent American stockbroker and investment advisor, the scheme operated for over two decades and involved the misappropriation of billions of dollars from investors. Madoff promised high and consistent returns, luring individuals, charities, pension funds, and other financial institutions with seemingly attractive investment opportunities. However, it was later revealed that these returns were falsified, and Madoff had been running a sophisticated Ponzi scheme, using new investors' money to pay off earlier investors. The scheme eventually collapsed in 2008 during the financial crisis, leading to Madoff's arrest and subsequent conviction in 2009. He was sentenced to 150 years in prison, where he died in 2021. The scandal had a profound impact on the financial industry and investor confidence, leading to increased scrutiny of investment practices and regulations.
