70-year-old Bernard L. Madoff, former Nasdaq chairman, has confessed to a massive fraud scam that will cost investors at least 50 billion U.S. dollars

Brad Friedman, attorney for investors, provided more details.

"They invested their money with Madoff, in some cases all of their money, tens of millions of dollars, which apparently he was taking, purporting to be getting 10, 15 percent returns on their money, when in fact he had lost all of it and was just continuing in a pyramid fashion to get more investors' money and pretending to pay off the old people with new peoples' money and now 50 billion dollars in assets are wiped out, gone."

Worried investors were hoping for answers on Friday as they waited in the lobby of Madoff's New York office.

Associate director of enforcement in the Securities and Exchange Commission's New York office, said the SEC had filed a civil securities fraud charge as well and was alleging a stunning fraud that appears to be of epic proportions.

The SEC said it was seeking emergency relief for investors, including an asset freeze and the appointment of a receiver for the firm.

If the allegations contained in a criminal complaint are true, it may be the largest fraud ever blamed on a single individual.

It would be a steep fall for Madoff, who founded his business in 1960 with 5,000 US dollars he earned in part working as a lifeguard on Long Island beaches.

His firm was a market maker, handling trades in some of the largest securities on various stock exchanges, matching buyers and sellers.

Investigators say Madoff's crime originated in a separate and secretive investment-advising business that served between 11 and 25 clients and had a total of over 17 billion dollars in assets under management.

The criminal complaint signed by FBI Agent Theodore Cacioppi said Madoff told at least three senior employees at his Manhattan apartment that the investment adviser business was a fraud and had been insolvent for years, losing at least 50 billion US dollars.

Defence lawyer Dan Horwitz called Madoff "a person of integrity" and said he intends to fight the charge.

If convicted, Madoff could face up to 20 years in prison and a maximum fine of five million US dollars.