1/21/09 STAMFORD ADVOCATE: Investment firm investigated for Madoff ties

Investment firm investigated for Madoff ties


The Advocate Staff
Posted: 01/21/2009 07:02:02 PM EST





The Seattle-based law firm Keller Rohrback is investigating Fairfield Greenwich Group and several other money managers who invested funds with Bernard L. Madoff Investment Securities LLC on behalf of investors who lost millions in the $50 billion Ponzi scheme.



Fairfield Greenwich Group, a fund of funds manager with an office at 2 Soundview Drive in Greenwich, the hometown of founder Walter Noel, had $7.5 billion of its $14.1 billion in assets invested with Madoff in its Sentry Fund as of November.



Fairfield Greenwich Group, which was founded in 1983, declined to comment.



Other firms being investigated by Keller Rohrback include MassMutual's Tremont Group Holdings Inc., Rye Investment Management and Oppenheimer Funds. Access International Advisors and Maxam Capital Management also are being investigated.



"These intermediaries must be examined", said Mike Warner, a partner with Keller Rohrback.



"They needed to do their due diligence," he said, adding that other firms may be investigated. "I think there's a lot more to be written in this story."



Madoff, 70, was arrested on charges of securities fraud Dec. 11 by the FBI after admitting to the scheme that may have bilked investors out of $50 billion. He is under house arrest in his New York City penthouse.



The day after Madoff's arrest, Fairfield Greenwich Group announced on its Web site that it intends to recover all assets lost in Madoff's pyramid scheme. On Dec. 16, the firm announced on its Web site that it was assessing the extent of possible losses.



"Funds of funds and other money managers that placed money with Madoff should be investigated", said Kurt Schacht, managing director of the CFA Center in New York City.



"That's entirely appropriate," he said. "There's been a major breach of responsibility with these due-diligence experts."





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