Madoff Feeder Fund Sued, Madoff Yachts Seized

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.