Forensic accountants have been called in to work on what is thought to be the largest financial fraud ever carried out in the US.

We wrote earlier in this blog about Ponzi schemes and Bernie Madoff in March 2009, the former non-executive chairman of the NASDAQ stock market, pleaded guilty to 11 federal offences related to a massive Ponzi scheme which left investors defrauded of billions of dollars.

A Ponzi scheme is defined as a fraudulent investment operation that pays returns to its investors from their own money, or the money paid by subsequent investors.

Bernie Madoff Portrayed as the Joker by New York

Such underhand dealings are complicated to create, and very difficult to trace once they have been put into action. That is why teams of forensic accountants have now been employed to look into where the missing money is, thought to be as much as $50 billion. Among the high profile clients who lost money with Madoff is reported to be the former actress Zsa Zsa Gabor who had invested around $10 million with his firm.

To investigate properly the forensic accountants will need to sift through a hundreds of records held on both computer and paper. Financial experts have stated that they would not be surprised if Madoff’s missing billions are in other countries by now, as he was often travelling and doing business abroad.

Yet not all Ponzi schemes are on such a huge scale and investigators have warned about such a surge in pyramid schemes that the perpetrators are now being referred to as ‘mini Madoff’s’.

If you think you have been a victim of fraud, no matter how small or large, contact Forensic Accounting Services today for a free consultation on how we can help.