The biggest fraud in the history of the world was ran by Bernie Madoff. Madoff scam with all of the rules, regulations, checks, laws and balances inflated to proportions before popping. Although the scheme was way too complicated but it failed to fool everyone(Ionescu 2010). As a matter of fact, years before the fraud was charged there was well documented evidence released to the government that this was indeed a fraud of massive size. The ineffectiveness of laws and regulations was brought into question because of the inability of the government to uncover the fraud which was delivered to them.
The world’s largest Ponzi scheme was ran by Bernie Madoff in the year 2008. Over 50 billion US dollars vanished once all the losses were calculated in the biggest investment fraud in the history. The victims of this swindle included movie stars, high net-worth investors, university endowments, pension funds and various others. In the whole situation, the most important factor was Harry Markopoulos who was an astute portfolio manager of Rampart Investment Management. He among others believed that this was all a giant fraud and warned the government for more than a decade(Ionescu 2010). Regulators failed in their investigations and Madoff was successful in fooling them all. Those who lost their life savings are still baffled by various queries. Were the regulators incapable of understanding the complexity of the financial transactions they were investigating or were they intimidated by a powerful and well respected figure. In any of the case, Madoff was successful in brushing off the notion that for a very time he was defrauding investors of billions and was committing a mammoth fraud.