The extent of the former hedge fund manager's fraud is estimated at around £35 billion.
Former US hedge fund manager Bernard Madoff has gone to jail - for pulling the biggest "Ponzi" scam of all time.
The disgraced investor, who is facing 150 years in prison when he is sentenced later this year, pleaded guilty to fraud at a New York court - and was then led away in handcuffs. Rich participants in Mr Madoff's funds have lost around £35 billion in total due to the "Ponzi" practices and seem unlikely to get back a penny from their investments.
It is thought that the fraud worked by Mr Madoff using money from new investors to pay out to older investors in his funds. This meant that money earned by the investors was not from returns from the investments themselves, but money directly from other participants.
Several victims were in court yesterday to watch Mr Madoff's plea. Speaking in court, he said: "I cannot adequately express how sorry I am for what I have done," adding that he felt "ashamed".
Speaking to the BBC, Cynthia Friedman, who lost millions of dollars due to the fraud, commented: "He has no remorse. He's a horrible man. He stole from charities, he's just an awful man."
Mr Madoff was arrested for the fraud by federal prosecutors last year. He later admitted to running Ponzi schemes for the past two decades.
