Magnitude of losses The news brought down five other banks in addition to Hanover Trust. Ponzi's investors were practically wiped out, receiving less than 30 cents to the dollar. They lost about $20 million in 1920 dollars (approximately $ million in dollars). By comparison, Bernie Madoff's similar scheme that collapsed in 2008 cost his investors about $18 billion, 53 times the losses of Ponzi's scheme. Prison and later life In two federal indictments, Ponzi was charged with 86 counts of mail fraud and faced life imprisonment. At the urging of his wife, Ponzi pleaded guilty on November 1, 1920, to a single count before Judge Clarence Hale, who declared before sentencing, "Here was a man with all the duties of seeking large money. He concocted a scheme which, on his counsel's admission, did defraud men and women. It will not do to have the world understand that such a scheme as that can be carried out ... without receiving substantial punishment." Ponzi was sentenced to five years in federal prison. Massachusetts Ponzi was released after three-and-a-half years and was almost immediately indicted on 22 state charges of larceny, which came as a surprise to Ponzi; he thought he had a deal calling for the state to drop any charges against him if he pleaded guilty to the federal charges. He sued, claiming that he would be facing double jeopardy if Massachusetts essentially retried him for the same offenses spelled out in the federal indictment. The case, Ponzi v. Fessenden, made it all the way to the U.S. Supreme Court. On March 27, 1922, the Supreme Court ruled that federal plea bargains have no standing regarding state charges. It also ruled that Ponzi was not facing double jeopardy because Massachusetts was charging him with larceny while the federal government charged him with mail fraud, even though the charges implicated the same criminal operation. In October 1922, Ponzi was tried on the first 10 larceny counts. Since he was insolvent, Ponzi served as his own attorney and, speaking as persuasively as he had with his duped investors, was acquitted by the jury on all charges. He was tried a second time on five of the remaining charges, and the jury deadlocked. Ponzi was found guilty at a third trial, and was sentenced to an additional seven to nine years in prison as "a common and notorious thief". Remarkably, during his various prison