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| Madoff admits $50bn fraud scheme | Madoff admits $50bn fraud scheme |
| (10 minutes later) | |
| Disgraced US financier Bernard Madoff has pleaded guilty to all 11 charges surrounding a $50bn (£35bn) fraud. | Disgraced US financier Bernard Madoff has pleaded guilty to all 11 charges surrounding a $50bn (£35bn) fraud. |
| Saying he was "deeply sorry and ashamed", prosecutors want him to get a 150-year jail sentence. | |
| Madoff, 70, ran a Ponzi scheme where early investors were paid off with the money of new clients. | Madoff, 70, ran a Ponzi scheme where early investors were paid off with the money of new clients. |
| The hearing is also set to allow some of Madoff's thousands of victims to address the court. At least 20 of Madoff's investors have asked to speak. | The hearing is also set to allow some of Madoff's thousands of victims to address the court. At least 20 of Madoff's investors have asked to speak. |
| Addressing the court, Madoff said he "cannot adequately express how sorry I am for what I have done". | |
| "I realised that my arrest and this day would inevitably come," he said. | |
| The court hearing is also expected to rule on whether Madoff should be allowed to continue to remain on bail. He is not likely to be sentenced for a number of months. | The court hearing is also expected to rule on whether Madoff should be allowed to continue to remain on bail. He is not likely to be sentenced for a number of months. |
| Since his arrest in December, Madoff has been confined to his luxury Manhattan apartment. | Since his arrest in December, Madoff has been confined to his luxury Manhattan apartment. |
| Money laundering | Money laundering |
| A former chairman of the Nasdaq stock market, Madoff has been a Wall Street figure for more than 40 years. | A former chairman of the Nasdaq stock market, Madoff has been a Wall Street figure for more than 40 years. |
| You're dealing with the greatest con artist probably in the history of the world Madoff investor Burt Ross, a former town mayor Madoff victims 'are not all rich'Madoff's road to ruinHow long had it been going on for? | You're dealing with the greatest con artist probably in the history of the world Madoff investor Burt Ross, a former town mayor Madoff victims 'are not all rich'Madoff's road to ruinHow long had it been going on for? |
| He is the only person accused in the giant fraud surrounding his firm, Bernard L Madoff Investment Securities. | |
| Prosecutors said the fraud had been going on since at least the 1980s, but Madoff told the court that it started in the early 1990s, in response to the then recession. | |
| Madoff's 11 charges include four counts of fraud. | Madoff's 11 charges include four counts of fraud. |
| In addition, he has pleaded guilty to three counts of money laundering, making false statements, perjury, making a false filing to the US financial watchdog, and theft from an employee benefit plan. | In addition, he has pleaded guilty to three counts of money laundering, making false statements, perjury, making a false filing to the US financial watchdog, and theft from an employee benefit plan. |
| 'A genius' | 'A genius' |
| One of Madoff''s victims, Burt Ross, a former mayor of New Jersey town Fort Lee, told the BBC he did not expect to recover a single cent of the $5m he invested. | One of Madoff''s victims, Burt Ross, a former mayor of New Jersey town Fort Lee, told the BBC he did not expect to recover a single cent of the $5m he invested. |
| "Bernard Madoff is a genius," said Mr Ross. "You're dealing with the greatest con artist probably in the history of the world. | "Bernard Madoff is a genius," said Mr Ross. "You're dealing with the greatest con artist probably in the history of the world. |
| WHAT IS A PONZI SCHEME? A fraudulent investment scheme paying investors from money paid in by other investors rather than real profitsNamed after Charles Ponzi who notoriously used the technique in the United States in the 1920s Differs from pyramid selling in that individuals all tend to invest with the same person Madoff relied on 'irrational euphoria' | WHAT IS A PONZI SCHEME? A fraudulent investment scheme paying investors from money paid in by other investors rather than real profitsNamed after Charles Ponzi who notoriously used the technique in the United States in the 1920s Differs from pyramid selling in that individuals all tend to invest with the same person Madoff relied on 'irrational euphoria' |
| "He created a mystique and associated with extraordinarily well respected and revered people, and so he was given the benefit of the doubt by financial regulators who blew it badly." | "He created a mystique and associated with extraordinarily well respected and revered people, and so he was given the benefit of the doubt by financial regulators who blew it badly." |
| Investigators say they are continuing efforts to recover all the money Madoff has stolen, but most commentators - and most of his investors - say it is highly unlikely that any more than a very small amount will be found. | Investigators say they are continuing efforts to recover all the money Madoff has stolen, but most commentators - and most of his investors - say it is highly unlikely that any more than a very small amount will be found. |
| Mark Raymond, a lawyer representing some of Madoff's victims, said it would be wrong to think of them all being multimillionaires. | Mark Raymond, a lawyer representing some of Madoff's victims, said it would be wrong to think of them all being multimillionaires. |
| Despite widespread press coverage of famous names and a wealthy elite, Mr Raymond, of law firm Broad and Cassel, said many were normal working people, including a retired couple from Atlanta. | Despite widespread press coverage of famous names and a wealthy elite, Mr Raymond, of law firm Broad and Cassel, said many were normal working people, including a retired couple from Atlanta. |
| "He's 82, she's 78, and they are both looking for work because they have lost everything," he said. | "He's 82, she's 78, and they are both looking for work because they have lost everything," he said. |