Madoff Feeder Fund Accused of Fraud (fed over $7 billion to Madoff)

[sabra]

Source: ABC News


Fairfield Greenwich Group was Founded by Walter Noel of Greenwich, Conn.

A fund that fed over $7 billion into Bernard Madoff's Ponzi scheme has been charged with knowingly misrepresenting to its investors what it knew about Madoff's operation and with asserting it performed a level of due diligence that it did not actually perform, according to a civil complaint by the Massachusetts Secretary of State.

The Fairfield Greenwich Group, headed by society page bold faced name, Walter Noel, asserted it had $14 billion under management prior to the December arrest of Madoff and his subsequent guilty plea to charges of running a $50 billion Ponzi scheme.

Noel's attorney has previously stated that Noel and his family are also victims of Madoff and that his firm, despite its best efforts, did not know that Madoff was scamming the investors Noel sent to Madoff.

Subsequently, the fund group's management asserted that it would seek to recover the $7.2 billion of its investors' capital that it had placed in Madoff's hands through one of its investment vehicles, the Fairfield Sentry fund.

Read more: http://abcnews.go.com/Blotter/story?id=7229276&page=1

[DURHAM D]

1. If you want more info on Walter Noel -

Vanity Fair (I think it is the most recent one) did a story on Noel, his wife and his many daughters and their husbands. Its an interesting read - even more so now that he has been charged.

[Gin]

2. IMO...in addition to the fees...I think there were huge kickbacks to these feeder

fund managers...hush money to keep the pump primed.. (IMO)