Town's pension funds secure Madoff-related assets

16 April 2009

The pension fund of a Connecticut town has won a court order securing $25 million in assets owned by relatives and feeder funds of Bernard Madoff, according to reports.

Fairfield's pension fund invested $15 million with Madoff-related funds on behalf of 1,500 members. A statement received shortly before the broker's $65 billion Ponzi scheme unraveled in December 2008 shows the principal had grown to around $42 million, Reuters reports.

The fund had previously secured a temporary asset freeze against Mr Madoff's wife Ruth, his brother Peter and his two sons, Mark and Andrew. The order also covered a number of hedge fund managers that fed investments to Mr Madoff, including Walter Noel and Jeffrey Tucker of the Fairfield Greenwich Group.

Under the new order, Andrew and Mark Madoff will pay up to $2.5 million each on properties in Greenwich, Connecticut. Peter Madoff has been ordered to pay up to $2.5 million on a home in Long Island, New York.

Walter Noel has pledged up to $10 million on his property in Greenwich, while other feeder funds will pay up to $2.5 million in property or cash escrows, the news agency noted.

In a separate case, Fairfield Greenwich is facing civil fraud charges in Massachusetts over claims that it did not conduct adequate due diligence on its investments with Mr Madoff.

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