4. Generally the investor would be so happy with the high dividends that they would not complain. The authorities would therefore remain ignorant of the operations of the scheme. Besides if exposed and forced to stop the investors would lose all the money they had invested.
5. Madoff would not be the only one to operate this scheme. Actually no wealth is generated as the invested money is actually returned. Nevertheless the so-called dividends would contribute to the per capita and GDP of the country.