DEFINITION of 'Mini Madoff'
Financial con men that are accused of or have commited crimes similar to those of Bernard Madoff. Mini Madoffs tend to orchestrate ponzi or pyramid schemes that are similar in nature to Bernard Madoff's, but are smaller in size and notoriety.
BREAKING DOWN 'Mini Madoff'
In a ponzi scheme, like Bernard Madoff's, investors are promised unusually high returns and early investors receive these returns from the money invested by new investors. The cycle of illegitimate returns can continue until the pool of investors fails to grow. With all schemes of this nature, eventually the infusion of new money dries up and the hoax unravels.