11 December 2008: Bernie Madoff is arrested

Federal agents arrested Bernard Madoff, former Nasdaq chairman and respected Wall Street figure, after he told his sons that his investment business was one big lie. His Ponzi scheme, which paid steady returns to old clients with new clients' money, had run for decades, with paper losses estimated at around $65 billion. Warning signs had been reported to regulators for years.

The lesson: Returns that are too smooth for too long deserve suspicion, not admiration.