Bernard Madoff Confesses to Sons that He Has Been Running a Ponzi Scheme

He tells Andrew and Mark, who were senior employees at his trading operation, that he would like to pay out several million dollars in company bonuses in December -- several months before they are normally paid out.

When his sons challenge him on the idea, Madoff insists they move to his apartment because he "wasn't sure he'd be able to hold it together" if the conversation continued at the office.

According to investigators, at his apartment Madoff confesses to his sons that the investment advisory business is a fraud, that he is "finished," that he has "absolutely nothing," and that the operation was "basically, a giant Ponzi scheme." He estimates the fraud to be approximately $50 billion.

Bernard Madoff confessed to two sons this week that his investment advisory business was “a giant Ponzi scheme” that cost clients $50 billion before two FBI agents showed up yesterday morning at his Manhattan apartment.

“We’re here to find out if there’s an innocent explanation,” Agent Theodore Cacioppi told Madoff, who founded Bernard L. Madoff Investment Securities LLC and was once chairman of the Nasdaq Stock Market.