Library:The Wizard of Lies
| The Wizard of Lies: Bernie Madoff and the Death of Trust | |
|---|---|
| Author | Diana B. Henriques |
| First published | 2011 |
| ISBN | 978-0-8050-9134-2 unverified |
| Role | Analysis |
| Domains | Business, Finance & Scams Crime & Public Safety |
| Tactics | Fraud or Scam |
The Wizard of Lies: Bernie Madoff and the Death of Trust is a 2011 book by Diana B. Henriques.
Summary
Diana B. Henriques, a senior financial reporter for The New York Times who covered the Madoff case from the day of his arrest, wrote this comprehensive account of the largest Ponzi scheme in history. Drawing on court documents, interviews with victims, investigators and Madoff's family, and prison interviews with Madoff himself, the book reconstructs how Madoff deceived thousands of investors for decades. It was adapted as a 2017 HBO film starring Robert De Niro, in which Henriques played herself.
Madoff's rise
Henriques traces Madoff's career from founding his firm in 1960 to becoming a pioneer of electronic trading and chairman of the Nasdaq stock market. His legitimate market-making business gave him prestige and access to the regulators and industry leaders who later failed to see through him.
The fraud
The book explains how Madoff's advisory business, run separately from his trading firm, produced steady, consistent returns for clients year after year. No trades were actually made; withdrawals were paid with new deposits. Henriques describes the network of "feeder funds," charities and wealthy individuals who channeled money to Madoff, often receiving fees or other benefits, and the reasons many did not ask questions.
The victims
A major strength of the book is its attention to victims, from wealthy investors to retirees, charities and pension funds that lost money directly or through feeder funds. Henriques shows how the fraud's collapse destroyed not only savings but trust within communities, families and institutions.
Madoff's account
Henriques interviewed Madoff in prison and corresponded with him. She reports his explanations, including his claim that the fraud began later than investigators believed, while showing where the evidence contradicts him.
Relevance to Bullshitopedia
The Wizard of Lies explains how affinity, reputation and exclusivity allowed a fraud to persist for decades. It is a detailed reference on the mechanics of trust that Ponzi schemes exploit.
Related entries
- Bernie Madoff's steady returns
- Charles Ponzi's postal reply coupon scheme
- No One Would Listen (Markopolos)