Madoff Receiver Sues Fairfield Greenwich Founders, 40 Others

Jul 21 2010 | 12:13pm ET

The court-appointed trustee in the Bernard Madoff Ponzi scheme case has sued 19 people and 34 affiliates with ties to Madoff feeder fund Fairfield Greenwich Group, including the hedge fund firm’s three founders.

Irving Picard said the Fairfield Greenwich employees and entities “engaged in a systematic, purposeful enterprise with Madoff to maintain and profit from a fraud and wrongly enrich themselves.” The receiver is seeking more than $3.6 billion in the lawsuit, filed yesterday in Manhattan bankruptcy court, roughly half of the $7.5 billion Fairfield Greenwich investors lost in the Madoff fraud.

“The defendants did not properly, independently and reasonably perform due diligence into the many red flags strongly indicating Madoff was a fraud,” the complaint alleges. “The defendants did exactly the opposite.”

Picard first sued three Fairfield Greenwich entities last year. Among the new defendants are Walter Noel, Andres Piedrahita and Jeffrey Tucker, the firm’s three founding partners. The defendants denied the new allegations.

“The Madoff trustee’s amended complaint is replete with false, misleading and rehashed accusations,” the firm said in a statement.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of