Conn. Firm Collected $500M From Madoff's Marks

Fairfield Greenwich didn't deliver promised oversight to clients
By Nick McMaster,  Newser Staff
Posted Dec 22, 2008 12:32 PM CST
Conn. Firm Collected $500M From Madoff's Marks
Bernard Madoff enters his house through a crowd of cameras in New York, Wednesday, Dec. 17, 2008.   (AP Photo/Seth Wenig)

With its clients having lost $7.3 billion in Bernard Madoff’s Ponzi scheme, a Connecticut hedge-fund advising firm wants the public’s sympathy—but in fact, the Fairfield Greenwich Group took almost $500 million in fees alone from the money Madoff shepherded. And, the New York Times reports, it’s not clear the firm delivered on the strict oversight it promised its investors.

Fairfield said it had itself invested $60 million with Madoff, less than 1% of what it actually put in his care. A partner in a firm that once considered investing in Fairfield—a family-run outfit, much like Madoff’s—said the “squishy and vague” assurances of its bosses about the management of money from its flagship fund quickly turned him off. (Read more Fairfield Greenwich Group stories.)

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