December 15, 2008 Losses from Ponzi scheme felt in New England Play video

(Brian Burnell, NECN: Hartford, CT) = The fallout from the arrest of Wall Street trader Bernard Madoff is just beginning. Madoff has been charged with running the biggest Ponzi scheme in history and the losses are already being reported as at least 50-billion-dollars. Some of those losses are being felt in New England.

Bernard Madoff ran Bernard l. Madoff investment securities. The former chairman of the Nasdaq stock market built a reputation at his 48-year-old company as "the man" on Wall Street.

Paul Hiller, Fairfield, CT. Chief Fiscal Officer: Since 1994 he had never had a down quarter. It was steady growth. It wasn't spectacular growth but it was consistent. During this past year during one of the most turbulent market conditions that anyone has ever experienced throughout the world for 11 straight months he had positive results. 11 straight months.

Paul Hiller is the chief fiscal officer for the town of Fairfield, Connecticut. The town's investment advisor, maxim capital management, put some of Fairfield’s pension fund with Madoff securities.

Paul Hiller, Fairfield, CT. Chief Fiscal Officer: 41-million 885-thousand dollars. That represents approximately, as of November 30th, approximately 14-percent of the assets of the fund.

The fund is still in decent shape. No pensioner is going to go without a check or health benefits. The accounts of current employees are safe. But that 41-million dollars is likely gone. And Fairfield

is by no means alone. Other's in New England who have lost millions include the Lappin charitable foundation of Salem, Massachusetts which lost 8-million dollars and had to cease operations... The Carl & Ruth Shapiro foundation, big donors in the Boston area, lost 145-million... The former owners of stop and shop, Avram and Carol Goldberg, lost part of their 29-million-dollar investment managed by Madoff... And the state of Massachusetts pension fund lost 12-million. Investigators say Bernard Madoff had a sterling reputation that duped some smart people.

Paul Hiller, Fairfield, CT. Chief Fiscal Officer: He had built an aura about himself, about his firm, about the product and this is why he was able to attract money from some very, very intelligent and sophisticated investors.

Here's Madoff himself on a YouTube video talking about investor safeguards.

Bernard Madoff, Madoff Investment Securities: You know in today's regulatory environment its virtually impossible to violate rules.