Family Management Corporation may have wrongfully concentrated Fm Low Volatility Fund assets into three "funds of funds" that in turn concentrated its assets with Bernie Madoff.

This is a securities class action brought on behalf of limited parters of the Fm Low Volatility Fund.

Family Management Corporation was general partner in a limited partnership called FM Low Volatility Fund. Fulvio & Associates, LLP acted as FM Low Volatility's independent auditor.

Family Management concentrated more than half of the FM Low Volatility Fund's investment capital with three hedge funds: Andover Associates LLC I, Beacon Associates LLC I, Maxam Absolute Return Fund, LP. Andover, Beacon and Maxam were "funds of funds" which invested in yet other hedge funds. Andover, Beacon and Maxam heavily invested in entities managed by Bernard Madoff or Madoff-related entities.

This is a securities class action lawsuit against the named parties above and their respective decision makers alleging that they failed to perform the necessary due diligence that they were being compensated to perform as investment advisors, managers and fiduciaries. Defendants either knew or should have known that the FM Low Volatility's assets were employed as part of a massive Ponzi scheme orchestrated by Madoff, or that Madoff otherwise reported purported results that would have been impossible to achieve under his split-strike conversion strategy, and took no steps in a good faith effort to prevent or remedy that situation, proximately causing millions of dollars of losses. Additionally, Family Management issued an Offering Memorandum that was false and misleading because it falsely stated that Family Management would not invest more than 35% of FM Low Volatility's net asset value with any one investment vehicle, but, in reality, more than 60% of FM Low Volatility's assets were funneled through three "fund of funds" hedge funds. The Offering Memorandum also falsely stated that Family Management would:

(i) endeavor to verify the integrity of each manager of a "fund of fund" in which FM Low Volatility was invested;

(ii) attempt to monitor the performance of each manager; and

(iii) request detailed information regarding the historical performance and investment strategy of each of the selected investments for FM Low Volatility.

Plaintiffs allege that Defendants, with no or inadequate due diligence or oversight, abdicated their responsibilities and entrusted the FM Low Volatility assets to Madoff-run investment vehicles