More Investors Sue Hedge Funds for Ties to Madoff
Tuesday, December 23, 2008 : PermalinkNew York (HedgeCo.Net) – Investors in the hedge fund Fairfield Greenwich Group have sued the company after about $7.5 billion in potential losses stemming from ties to Bernard Madoff.
The investors claimed that Fairfield sustained “avoidable losses,” by not practicing proper due diligence and failing to manage their investments properly. The lawsuit, filed by Pasha and Julia Anwar in New York State Supreme Court on Friday, is one of many attempts lately to salvage some of the estimated $50 billion lost by Madoff through his infamous Ponzi scheme. The Anwars are residents of Illinois and had an interest in Greenwich Sentry LP.
Massachusetts Mutual Life Insurance is also facing a scrutiny from angry investors. On Monday, Arthur E. Lange of Connecticut and Arthur C. Lange of New York filed a lawsuit in the Southern District of New York, claiming that the company “breached their fiduciary duties by failing to conduct adequate due diligence and/or numerous red flags,” regarding their investments with Madoff.
Massachusetts Mutual has denied the claims and plans to “vigorously defend itself,” according to a spokesman for the company.
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net
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Tags: accredited-investors, anwar, bernard madoff, fairfield greenwich group, fiduciary duties, hedgeco, massachusetts mutual life insurance, mutual-life-insurance, pasha, ponzi scheme, proper due diligence, red-flags, salvage, scrutiny, sentry, sister-sites, southern district of new york, state supreme court
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