A1: A Ponzi scheme is a fraudulent investing scam that promises high rate of return with little risk to investors. A Ponzi scheme generates money by acquiring money from new investors and then and then giving it to older investors. (button below)
A2: The reason his scheme went on for so long is because the stock market was good and new investors kept coming to him, the reason people came to him is because is because he promised a 1% return at all times so people kept coming to him. He was in committees of the SEC so he could get attention away from him.
A3: In the video it stated that people that run ponzi schemes are generally very nice and generous. They have to act like this so people like them and buy their stock and don't get suspicious about them.
A4: The reason the SEC did nothing about Berny is because Berny was part of the SEC and the people their trusted him and he could get attention off of him.
A5: I think he started it because his business was in shambles and the only way to fix it was by starting to do a ponzi scheme. Once he saw it was working he continued to do it and worked out for him until he was eventually arrested in 2008.
2 new facts- 1.Started his firm with $5,000 he saved from working as a lifeguard. 2.Had many high-profile victims, including director Steven Spielberg, actors Kevin Bacon and Kyra Sedgwick, and New York Mets owner Fred Wilpon.