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Managers of the Fairfield Sentry Limited fund might have wrongfully entrusted substantially all its investment assets with Bernie Madoff.
Investigation Source (Case #09-cv-00134)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- Unsuitable Investments
- Scams (Including Madoff)
- Registration Statement
Product or Service
- Hedge Funds
Injury Type
- Monetary Loss
Investigation Details
Investigation and pending class action lawsuit against the Fairfield Sentry Limited fund ("Fairfield Sentry") on behalf of investors in the Fairfield Sentry.
The class action complaint alleges various claims against Fairfield Sentry related to losses incurred by Fairfield Sentry investors as a result of the admitted "Ponzi scheme" orchestrated by Bernard L. Madoff .
Substantially all of Fairfield Sentry's assets were entrusted to Madoff. The class action complaint was filed against Fairfield Greenwich Group, Fairfield Greenwich Limited, Fairfield Greenwich (Bermuda) Limited, Fairfield Greenwich Advisors LLC, and 22 of the partners and board members, including Walter Noel, Jeffrey Tucker and Andres Piedrahita, for breaches of fiduciary duty, gross negligence, unjust enrichment, breach of contract, promissory estoppel, and mutual mistake.
The class action complaint alleges that Fairfield Sentry owed investors a fiduciary duty to protect and manage the assets entrusted to them with care, diligence and the highest degree of good faith, and that they breached this duty. The class action lawsuit further alleges that Fairfield Sentry were obligated by contractual terms in the August 14, 2006 Private Placement Memorandum to perform due diligence on potential fund managers and perform ongoing monitoring of existing relationships with fund managers. The complaint alleges that defendants also breached those obligations.
As a direct result of defendants' alleged unlawful conduct, investors suffered avoidable losses and defendants were unjustly enriched. It is estimated that Fairfield Sentry Limited had approximately $7.3 billion of investment exposure and that approximately $1.0 billion was paid in management, performance and placement fees to the Fairfield Greenwich Group and its affiliates.
The complaint alleges that the defendants did not perform the necessary due diligence before placing funds that had been entrusted to their care under Bernard L. Madoff's Management. The complaint further alleges that because defendants did not perform this due diligence they breached their fiduciary duties and the contract created by the Private Placement Memorandum, and were unjustly enriched.
The class action complaint alleges various claims against Fairfield Sentry related to losses incurred by Fairfield Sentry investors as a result of the admitted "Ponzi scheme" orchestrated by Bernard L. Madoff .
Substantially all of Fairfield Sentry's assets were entrusted to Madoff. The class action complaint was filed against Fairfield Greenwich Group, Fairfield Greenwich Limited, Fairfield Greenwich (Bermuda) Limited, Fairfield Greenwich Advisors LLC, and 22 of the partners and board members, including Walter Noel, Jeffrey Tucker and Andres Piedrahita, for breaches of fiduciary duty, gross negligence, unjust enrichment, breach of contract, promissory estoppel, and mutual mistake.
The class action complaint alleges that Fairfield Sentry owed investors a fiduciary duty to protect and manage the assets entrusted to them with care, diligence and the highest degree of good faith, and that they breached this duty. The class action lawsuit further alleges that Fairfield Sentry were obligated by contractual terms in the August 14, 2006 Private Placement Memorandum to perform due diligence on potential fund managers and perform ongoing monitoring of existing relationships with fund managers. The complaint alleges that defendants also breached those obligations.
As a direct result of defendants' alleged unlawful conduct, investors suffered avoidable losses and defendants were unjustly enriched. It is estimated that Fairfield Sentry Limited had approximately $7.3 billion of investment exposure and that approximately $1.0 billion was paid in management, performance and placement fees to the Fairfield Greenwich Group and its affiliates.
The complaint alleges that the defendants did not perform the necessary due diligence before placing funds that had been entrusted to their care under Bernard L. Madoff's Management. The complaint further alleges that because defendants did not perform this due diligence they breached their fiduciary duties and the contract created by the Private Placement Memorandum, and were unjustly enriched.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Fairfield Sentry Limited | Fairfield Sentry Limited is a hedge fund, designed to be a fund of funds, i.e. a hedge fund that invests in other hedge funds. It was operated under the Fairfield Greenwich Group. |
| Fairfield Greenwich Group | Fairfield Greenwich Group is an asset manager. In November, 2008, it was reported that assets under management at Fairfield Greenwich Group totaled approximately $14.1 billion, of which approximately $6.9 billion was invested in vehicles connected to Bernie Madoff. |
| Fairfield Greenwich Advisors, LLC. | Fairfield Greenwich Advisors, LLC. is a wholly owned subsidiary of Fairfield Greenwich Group. It is an investment advisor to assets under management with the Fairfield Greenwich Group. Fairfield Greenwich Group is an asset manager. In November, 2008, it was reported that assets under management at Fairfield Greenwich Group totaled approximately $14.1 billion, of which approximately $6.9 billion was invested in vehicles connected to Bernie Madoff. |