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Madoff Feeder Fund Sued, Madoff Yachts Seized

2009_03_madmon.jpg The noose continues to tighten around anything related to Bernard Madoff. The Massachusetts securities regulators have sued the Fairfield Greenwich Group, the hedge fund that lost big by betting big with Madoff. According to Bloomberg News, the fund is accused of "defrauding investors by misrepresenting its knowledge of how Bernard Madoff ran his investment business. The group’s Sentry Funds had placed about 95 percent of its assets, or $7.2 billion, with" Madoff's firm. (Fairfield also charged a fee for "managing" those investments.) Mass. Attorney General William Galvin said, "Investment advisers have a fiduciary responsibility to their clients under law. The allegations against Fairfield in this complaint outline a total disregard for such responsibility, which helped the Madoff scheme stay afloat for so long." In other news, U.S. marshals seized Madoff's two boats—one of them was a yacht worth $2.2 million.

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Comments [rss]

  • fugothamist

    when is Ruth going to jail

  • NannyState

    When the Food Emporium delivers out to Danbury.

  • Rocknrope

    Good. These "feeder funds" are just as scummy and guilty as Madoff. I really wonder what the "money managers" there did all day when they were supposed to be managing clients' money that in reality just went to Madoff.

    I feel worse for the clients invested with these feeder funds. If you invested with Madoff, given his reputation within financial circles as untouchable by institutional investors, then you somewhat deserve what you got. These other funds provided the illusion that they actively managed your money, when in reality just passing it off to Madoff.

    They should all rot in prison.

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