Bernard Madoff, former NASDAQ chairman of the board and founder of Bernard L. Madoff Investment Securities LLC, was arrested December 12 on charges of fraud for his involvement in a $50 billion Ponzi Scheme alleged to have taken place over the past few decades.

On March 12, 2009 Madoff plead guilty to all 11 charges of the criminal indictment and was immediately sent to prison as inmate #61727054. Madoff faces up to 150 years behind bars for his crimes and will be formally sentenced June 16, 2009. For details on the arrest and charges read the full text of the criminal complaint against Bernard Madoff.

The Ponzi Scheme that Madoff and his associates masterminded is having a ripple effect on an already struggling global economy and the true scope of the deception has yet to come to light. Each day new revelations suggest that the Madoff Ponzi Scheme scandal will have international implications.

A Ponzi Scheme is a type of fraud similar to a pyramid scheme where initial investors are paid out based on the investments of newer participants and not on the merits of the investment's performance. Ponzi schemes offer very high initial returns that entice investors and are designed to collapse. These types of pyramid-like scams have been around since 1903 when Charles Ponzi first conned investors in the United States and Italy. It is from Charles Ponzi that the Ponzi scheme gets its name.

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