Madoff

Oh how the mighty have fallen. The wife of Ponzi schemer Bernie Madoff was forced to leave her tony and well appointed 4,000 plus square foot penthouse in Manhattan and was, until recently, in search of some new digs. You may remember that Mr. Madoff was convicted recently for his massive Ponzi scheme that bilked hundreds of people out of billions of dollars. While he'll never see the light of day again as a free man, his wife managed to escape any incarceration thanks to a deal cut with prosecutors. The New York Post reports that Ruth Madoff is moving in on a 400 square foot, one bedroom one bath condo on the Upper East Side. No more maids quarters and no more five bathroom penthouse. Don't feel too bad for her though, she was allowed to keep $2.5 million, which is more than many people make in a lifetime

How Ponzi Schemes Work

There's been a lot in the news about Ponzi schemes lately. How do they work? And who's Ponzi? Check out this podcast from HowStuffWorks.com to discover how an Italian immigrant created a classic con that's still fleecing investors today.