The claim
He had a legitimate investment strategy — the "split-strike conversion" approach — that generated steady returns for decades.
Made in: Investor communications, SEC filings, and regulatory examinations
The proof
Madoff pleaded guilty to running the largest Ponzi scheme in history — approximately $65 billion in fictitious returns. There was no legitimate investment strategy; new investor money was used to pay "returns" to existing investors.
The record
United States v. Madoff — U.S. District Court for the Southern District of New York · No. 1:09-cr-00228
Outcome: Pleaded guilty to 11 federal felonies including securities fraud, wire fraud, and money laundering (March 2009); sentenced to 150 years
The person admitted the facts under oath in open court, before a judge, to end a criminal case. The strongest record possible: self-incrimination.
Madoff's scheme operated for at least 17 years and defrauded thousands of investors, including banks, universities, and individual investors. He was discovered in December 2008 when the scheme collapsed during the financial crisis.