As long as money has existed, so too have scams. The Ponzi scheme in particular has a rich history, one that began long before its namesake Charles Ponzi was exposed in 1920. But while a number of swindlers have given a face to the Ponzi scheme over the years, Bernard Madoff's image will likely remain its symbol for generations to come. The sheer magnitude of the charges facing the former Nasdaq chief guarantees him staying power, and the true complexity of his scheme appears to only just now be emerging.
What follows is our guide to the scandal, primarily as it has affected Tufts.
May 2005: Tufts invests $20 million in Ascot Partners.
October 2008: Ascot Partners reports that since 2005, the investment had yielded $5.6 million in returns.
December 10: Madoff confesses to his sons that he had been running a $50-billion Ponzi scheme.
December 11: Madoff is arrested for fraud.
December 16: The New York Law firm Abbey Spanier Rodd & Abrams files a class-action lawsuit on behalf of New York Law School against Ascot Partners, the fund's auditor, and J. Ezra Merkin.
December 19: University President Lawrence Bacow informs the community about the ill-fated investment.
December 20: The New York Times publishes an article financially linking Merkin with James Stern, the chairman of Tufts' board of trustees.
January 5, 2009: The House Financial Services Committee holds a hearing to investigate the alleged Ponzi scheme.
January 8: Brandeis University President Jehuda Reinharz informs students that while the school was not invested in Madoff, a number of its major donors were. This will likely have an impact on donations.
