$50-bn fraud suspected on Wall Street

December 12th, 2008 - 11:21 pm ICT by IANS  

New York, Dec 12 (DPA) A leading Wall Street broker has been arrested on suspicion of conducting a $50-billion fraud, the Wall Street Journal reported Friday.Former Nasdaq chairman Bernard L. Madoff, who was a leading trader on the New York exchange for 50 years, was turned in to federal agents by his sons for running what they said he called a giant “Ponzi scheme”.

Charles Ponzi was responsible for one of the biggest frauds in US history and his name is given to pyramid-selling schemes where people pay into a programme that does not exist.

“Our complaint alleges a stunning fraud that appears to be of epic proportions,” said Andrew M. Calamari, associate director of enforcement in the Securities and Exchange Commission’s New York office.

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