Connecticut Firm Helped Madoff Go Global

As Bernard Madoff’s financial network comes under scrutiny, one investment fund is emerging as an especially close partner, the Wall Street Journal reports. Fairfield Greenwich had $7.5 billion invested with Madoff, more than half the group’s total assets as of Nov. 1. There’s no evidence Fairfield knew of Madoff’s Ponzi scheme, but it unquestionably helped him reach a much larger global audience.

Fairfield’s Sentry fund charged much higher fees than similar vehicles, including a 20% share of profits. In return, investors got Madoff’s trading brilliance, and Fairfield’s “systematic investment compliance” oversight. In 2006, the SEC chided Fairfield for not adequately disclosing that Madoff ran the fund, but Fairfield has promoted Madoff’s role in marketing materials since. (More Bernard Madoff stories.)