Describe the Ponzi scheme that businessman Bernard Modoff carried out

QUESTION

Describe the Ponzi scheme that businessman Bernard Modoff carried out and for which he pleaded guilty to 11 felony charges.

What will be an ideal response?

ANSWER

He convinced people to give money to his company by promising them a big return on their investment. Then, he would take money from new investors to make huge payouts to the old investors and repeat the process over and over.