Call It the Madoff Scheme

Bernard Madoff’s alleged crimes have been described as a “Ponzi Scheme,” but Peter J. Henning at DealBook suggests they deserve their own title. Unlike Charles Ponzi, who promised to double investors’ money in 90 days, “Mr. Madoff catered to the very rich, promising not great wealth—they already had that—but the steady returns that would keep their assets safe and secure. … Perhaps the brilliance of Mr. Madoff was that, unlike the huckster who takes money from any investor, he turned away any number of investors and did not hawk his investment vehicle to the general public. Indeed, one needed to be invited to invest, and those who received such golden bids were first told to put in just a small amount to ensure they were comfortable with the process.” Most importantly, Madoff retained the power to kick anyone who questioned his power out of the club.