In a Ponzischeme, the schemer acts as a "hub" for the victims, interacting with all of them directly. In a pyramid scheme, those who recruit additional participants benefit directly. Failure to recruit typically means no investment return. BernieMadoff: Who He Was, How His PonziScheme Worked - Investopedia. Ruth Madoff, Bernie's wife, once worked as his bookkeeper and maintained her own office at the Madoff firm. None of them, however, have been criminally charged in connection with the investment fraud. Hallmarks of a Ponzischeme. Ponzischemes likely originated in the 1870s, though their namesake is Charles Ponzi, who famously stole $15 million from victims in the 1920s. “The authoritative source on one of history’s most notoriousPonzischemes.”Who isthe elusive BernieMadoff? In Madoff Talks, author Jim Campbell presents the most comprehensive, insider account of the Madoff saga to date. BernieMadoff, infamous Ponzischemer, dead at 82. 03:11 • Source: CNNBusiness.The Madoff scandal has made headlines for years, but there is still a lot that people don’t know about the biggest Ponzischeme in history. Madoff’s victims are close to getting their money back. Learn more about what a Ponzischeme is and how you can avoid them. Read this summary of the BernieMadoff scandal as an example.