Prosecutors: Ponzi Scheme Lasted Twice As Long As Madoff Let On
NEW YORK (CBSNewYork) – The government has uncovered what they say is proof that Bernard Madoff did not run his massive $65 billion Ponzi scheme alone.
An enhanced indictment also indicates the largest-ever Ponzi scheme actually went on for nearly four decades, starting in the early 1970s.
WCBS 880’s Irene Cornell reports
Madoff previously told prosecutors the Ponzi scheme began in 1992.
Five of Madoff’s former employees were arraigned on additional fraud charges related to back-dating trades, falsifying records, bank fraud, tax fraud and defrauding the auditors, prosecutors said.
Attorneys for the former Madoff employees said they have to start over in building a defense for the new charges, so the judge set the trial date for next fall.
Madoff admitted to running the scheme for two decades, bilking many investors out of their life savings. He was sentenced in 2009 to 150 years in prison for running the largest Ponzi scheme in history.
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