WASHINGTON — The Securities and Exchange Commission today charged Bernard L. Madoff Investment Securities LLC with securities fraud for a Ponzi scheme that has resulted in $17 billion in assets under management that is now missing.

The SEC's complaint, filed in federal court in Manhattan, alleged that Bernard L. Madoff yesterday informed two senior employees that his investment advisory business was a fraud. Madoff told these employees that he was "finished," that he had "absolutely nothing," that "it's all just one big lie," and that it was "basically, a giant Ponzi scheme." Madoff admitted in this conversation that the firm was insolvent and had been for years, and that he estimated the losses from this fraud were at least $50 billion, according to the SEC.

Madoff founded the firm in 1960 and has been a prominent member of the securities industry throughout his career, the SEC said. Madoff served as vice chairman of the NASD, a member of its board of governors, and chairman of its New York region. He was also a member of NASDAQ Stock Market's board of governors and its executive committee and served as chairman of its trading committee.