Here come the Madoff-related law suits.
Fairfield Greenwich Group, the biggest victim (so far) of Bernard Madoff's Ponzi scheme, was slapped with a lawsuit over the $7.3 billion in investor assets likely lost.
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According to Bloomberg, Fairfield Greenwich Group founding partners
Walter Noel, Andres Piedrahita and Jeffrey Tucker are being accused of
breach of fiduciary duty, negligence and unjust enrichment, as are
Brian Francouer and Amit Vijayvergiya of FG Bermuda, a Noel affiliate.
The complaint was filed as a class action lawsuit on behalf of
investors.
The complaint, filed Dec. 19 in New York State Supreme Court in
Manhattan, charges the hedge fund managers with collecting "millions of
dollars in fees" while "fail[ing] to perform even a minimum level of
due diligence regarding the activities of Madoff."
Greenwich Sentry had invested $220 million with Madoff, and related
fund Fairfield Sentry had staked all its assets, amounting to $7.3
billion total in Madoff's hands. After seeing their holdings wiped out,
investors have been further incensed to discover that Madoff charged no
fees, leaving the hedge funds and fund-of-funds that invested capital
with him to pocket 100% of the fees they had been collecting. While
this may be the first lawsuit connected with the Madoff affair, odds
are it won't be the last. -
George White
See Bloomberg story
