His swindle was alleged to involve up to 50 billion dollars in cash and securities through Ponzi schemes, which involves paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from the profit from any real business. The couple had entrusted part of their fortune to Madoff, as confirmed by their publicist Allen Eichorn.
"I can confirm that they had investments with Mr. Madoff - no further specifics or comment beyond that," the New York Daily News quoted Eichorn as telling New York Magazine. Bacon and Sedgwick joined a list of wealthy victims from all over the world including the wealthiest woman in the world and heiress to the L'Oreal empire Liliane Bettencourt, Alicia Koplowitz, the Spanish billionaire, director Steven Spielberg and Elie Wiesel, the Nobel laureate.
New York (ANI): Kevin Bacon and his wife, actress Kyra Sedgwick, have also been dubbed victims of fraudulent investment operation headed by fund manager Bernie Madoff. Madoff, the perpetrator of the biggest financial fraud in history had been arrested and charged with securities fraud on December 11.