Sunday, 29 March 2015
Last updated 1 day ago
Jun 1 2009 | 10:35am ET
There are moments when the litigation in the Bernard Madoff case seems straight off the pages of a Kafka novel, and none more so than Friday’s move by one of Fairfield Greenwich Group’s Madoff feeder funds to sue Fairfield Greenwich itself.
The lawsuit, initiated by the directors of the Fairfield Sentry Fund, accuses its investment manager of charging fees based on “inflated net asset value reports of its investment with Bernard L. Madoff Investment Securities.” Fairfield Sentry, which itself is under fire from investors and others, styled itself “the largest victim of the fraud perpetrated by Bernard L. Madoff,” with losses of $7 billion.
Prior to the collapse of Madoff’s $65 billion Ponzi scheme in December, Fairfield Sentry managed $7.3 billion, nearly half the total managed by Fairfield Greenwich. Madoff pleaded guilty to fraud charges in March and is awaiting sentencing.
“The Fairfield entity defendants recklessly disregarded their duties as the fund’s risk and investment adviser and their actions and inactions constitute gross negligence,” the lawsuit, filed in New York state court in Manhattan, alleges. The suit also names Fairfield Greenwich founders Walter Noel and Jeffrey Tucker, as well as other partners at the firm, which last month agreed to give up control of four of its hedge funds.
The Fairfield Sentry directors are seeking more than $919 million in fees in paid to Fairfield Greenwich over the years.
Fairfield Greenwich rejected its flagship fund’s claims, calling it “part of a legal strategy intended to fend off multiple proceedings against it.”
“We understand that the directors of Fairfield Sentry are under attack on several fronts,” said Mark Cunha, a lawyer for Fairfield Greenwich. “Their lawsuit appears to be a defensive maneuver in connection with those attacks, and itself has no merit.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…