"That man just MADOFF with my money!"
1. A ponzi scheme is actually pretty simple. A person gets someone to invest in them, but instead of using the money they way that they promised, they just use the money from a bigger investor to pay them the amount that they agreed on. It is a way of using the bigger investors to pay the smaller investors, while pocketing the money, without drawing any major amounts of attention to the possibility of it being a con.
2. Madoff was a likable person, so little to no people considered the fact that it could be the work of a con artist. Madoff made record sheets showing the buying and selling prices of stocks, so to the investors, it seemed that he was just extremely good at what he did. Most people don't want to think about anything being wrong when they are making as much money as they were. Madoff was confident, he was trustworthy (or so he seemed), and he was making people money, so there was no need for people to consider or look into the possibility of it being a scam.
3. A "Ponzi person" is someone that everyone seems to like. People in the video described Madoff as charismatic, likable, and trustworthy. This perfectly describes a ponzi person. It's the type of person that you are drawn to when you walk in the room. Their confidence, friendliness, and charisma makes them seem like the kind of person you could invest in almost immediately.