“As the Ponzi scheme grows, it becomes more and more top-heavy, and requires more and more cash to keep it afloat. Every time we have a recessive economy, the lenders and investors try to withdraw funds and the money becomes more difficult to raise. As a result, a Ponzi scheme that has flourished up until this point becomes exposed. In all likelihood, the Madoff fraud was exposed because he could not raise enough money to keep the scheme afloat."

- ACFE President James D. Ratley, CFE

The ACFE published a feature article in the January edition of the Fraud Examiner e-newsletter that addresses the alleged fraud. The article includes insight from ACFE President James D. Ratley, CFE, who has been interviewed by the Fox News Channel, Reuters and other media sources since the Madoff story broke in December. The article also includes information about the nature of a Ponzi scheme and the history of Charles Ponzi: "The King of Ponzi Schemes", January 2009.

In the article, Ratley states: “The longer the economy stays in a recession, the more Ponzi schemes you’ll see begin to surface because of the diminished cash flow.”

Madoff and Ponzi Schemes in the News

There have been many news articles written about Bernard Madoff's alleged fraud. Here is a small sampling of them, in order by publishing date:

• Madoff Taped Telling Colleagues How to Deal With Regulators
  CNN, Sept. 10, 2009
  
  
• SEC Never Did 'Competent' Madoff Probe, Report Finds
  Bloomberg, Sept. 2, 2009
  
  
• Chasing Madoff
  Fraud Magazine, May/June 2009
  
  
• Pursuer of Madoff Blew a Whistle for Nine Years
  USA Today, Feb. 12, 2009
  
  
• Madoff Whistleblower Blasts SEC
  CNN Money, Feb. 4, 2009
  
  
• Trouble Times Bring Mini-Madoffs to Light
  The New York Times, Jan. 27, 2009
  
  
• Beyond Madoff, Ponzi Schemes Proliferate
  Time, Jan. 23, 2009
  
  
• U.S. to Appeal Magistrate Ruling Allowing Madoff to Remain Free
  Bloomberg, Jan. 13, 2008
  
  
• Madoff's Method
  The Boston Globe, Dec. 16, 2008
  
  
• Prominent Trader Accused of Defrauding Clients
  New York Times, Dec. 11, 2008
  
  

To support media articles about Madoff, Ponzi schemes and any fraud-related subject matter, interviews can be arranged with key ACFE contacts, including:

James D. Ratley, CFE
President
Association of Certified Fraud Examiners
Read James Ratley’s bio

Scott Grossfeld, CFE, CPA
CEO and CFO
Association of Certified Fraud Examiners
Read Scott Grossfeld’s bio

Bruce Dorris, J.D., CFE, CPA, CVA
Program Director
Association of Certified Fraud Examiners
Read Bruce Dorris' bio

For media inquiries and/or to arrange an interview, please contact Scott Patterson, ACFE media relations specialist: spatterson@acfe.com, (512) 478-9000, ext. 156.