Bernard L. Madoff Investment Securities

Madoff's 2008 exposure as history's largest Ponzi scheme ($65 billion) demonstrates how reputation can conceal fraud for decades. The former NASDAQ chairman's consistent 10-12% returns seemed unremarkable precisely because they weren't spectacular. When the financial crisis triggered redemptions exceeding fake balances, the fraud collapsed. Like a parasite whose growth finally exceeds host capacity, Madoff's scheme ended when withdrawals couldn't be met.