Hedge Fund FairfieldGreenwich Group Pays $8MM to Settle Civil Fraud Charges Related to Madoff Investments
The Wall Street Journal reports that FairfieldGreenwich Group, one of the largest funds to invest in Barnard Madoff's Ponzi scheme, has agreed to pay Massachusetts $8 million to settle civil fraud charges filed by the state's chief securities regulator. The April 2009 complaint alleged that FairfieldGreenwich invested its clients' money with Madoff, but neglected to conduct its promised due diligence. According to the settlement, FairfieldGreenwich will pay a $500,000 fine to Massachusetts, with the remaining settlement funds used for restitution for Massachusetts investors who lost money in the Madoff scheme. Following the filing of the complaint in April, the hedge fund initially denied the allegations, claiming that "[t]he complaint here was rushed into existence and is so filled with errors and factual distortions as to completely misstate the conduct of the companies that make up the Fairfield Greenwich Group."
