Fairfield Greenwich Group and Walter Noel are at the center of a federal class-action lawsuit accusing them of steering millions of dollars from investors to Bernard Madoff.
Greenwich resident Walter Noel Lost $7.5 Billion from investors by funnelling the money into Madoff's failed fraudulent brokerage firm.
The investors had placed their money in Fairfield Greenwich Group., a Manhattan-based investment company, as well as Walter Noel's Fairfield Sentry Fund.
Not all of Walter Noel's Family Members, who were officers in the Fairfield Greenwich Group were named in the original class action suit. But the lawsuit is expected to be amended to include brokers and others from Greenwich Fairfield who were involved in the Madoff investments.
Walter "feeder Fund Noel Has tried to take the position that He and his family members are like tens of thousands of investors swindled by Bernard Madoff. Walter Noel argues that the Fairfield Greenwich Group is totally shocked by the circumstances and unprecedented scope of the Madoff situation.
Walter "Feeder Fund" Noel claims that Fairfield Greenwich Group is exploring any and all available legal remedies available resulting from Madoff's conduct. But do you see Greenwich Fairfield lawyer pushing to have Madoff's bail revoked.
Fairfield Greenwich attorneys should be writing to the Federal Judge overseeing the Madoff Ponzie Scheme Case saying,"Mr. Madoff should be placed in jail. He is using funds that rightfully belong to Fairfield Greenwich investors to pay for a 24 Hour - 7 Day / Week team of court ordered security guards at his luxury penthouse."
Madoff, 70, was arrested Dec. 11 and Fairfield Greenwich investor money has been paying for his very expensive security detail ever since.
This week, federal prosecutors moved to have Madoff jailed while awaiting trial. Investigators contend that Madoff violated a court order freezing his assets when he sent more than $1 million worth of jewelry to relatives. Once again this is jewelry that could be sold to help pay Fairfield Greenwich investors.
Madoff never got a chance to send the checks because he was arrested. The checks were later discovered in his office desk by federal investigators.
Besides Walter "feeder Fund Noel's investors, victims of the scheme include major U.S. philanthropies and universities, celebrities and individual investors around the world. One French financier who lived in nearby New Rochelle, NY, Rene-Thierry Magon de la Villehuchet, committed suicide in his Manhattan office after realizing he had lost more than $1 billion of his clients' money to Madoff.
Yesterday, Federal Investigators revealed in court papers that Madoff had written more than 100 checks worth $173 million to friends and relatives, part of a plan to protect $200 to $300 million in the event his scheme unraveled. This is money that should be going to pay Fairfield Greenwich investors.
Walter "Feeder Fund" Noel has repeated failed to give his clients a full accounting of where all of Fairfield Greenwich's supposedly remaining $6.5 Billion is located.
According to the class-action lawsuit against Fairfield Greenwich Group, says the neither Walter Noel. nor his hedge funds put in place adequate controls or management that could have protected investors' money.
The lawsuit also accuses Fairfield Greenwich Group of misleading clients by dumping as much as 60 percent of the money they invested into the Madoff Ponzie scheme.
One Fairfield Greenwich client told Greenwich Roundup that he had been promised that no more than 25 percent of the money would be funneled into any one "investment vehicle."
Fairfield Greenwich has hired a lawyer, suposedly , to pursue potential litigation against Madoff's companies, but Walter Noel's clients have not seen any legal action to date.
Other "Feeder Fund" Lawsuits have been filed in U.S. District Court in Manhattan, charges that nearby White Plains, NY Hedge Funds, Beacon Associates LLC I, Beacon Associates Management Corp., Beacon/Andover Group and Andover Associates LLC with simular investment magagement failurers.
Others named in the Madoff Ponzie scheme lawsuits include Family Management Corp., (FMC) a Manhattan-based investment company.
Seymour Zises and Andrea Tessler, FMC's top two officials, as well as, the FMC fund's auditors, Fulvio & Associates.
Five miles west of Greenwich Darien, CT., hedge fund, Maxam Capital Management has also been named in class-action lawsuits.
Two miles west of Greenwich Tremont Group Holdings Inc., a Rye, NY -based investment manager that invested heavily with Madoff is also involved in a class-action lawsuit.
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