The administrative complaint In The Matter of Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd., Docket 2009-0028, filed today in Massachusetts, is the topic of this "Asset Search Roundup". As a review of today’s complaint reveals, Fairfield Greenwich Advisors LLC and Fairfield Greenwich (Bermuda) Ltd. are accused of being a feeder fund or conduit for the wrongful transfer of investor’s monies into Bernard Madoff’s Ponzi scheme. The 110 page complaint filed by the Enforcement Section, Massachusetts Securities Division can be viewed, (without its exhibits), at: Complaint Part "1" and Complaint Part "2".
William Galvin, Secretary of the Commonwealth of Massachusetts discussed this same complaint during his interview this morning, as is depicted in the CNBC "Fairfield Greenwich Fraud" video. In Secretary Galvin’s interview / video, he describes some of the specific allegations of the complaint. Perhaps most important about "the Fairfield Greenwich Fraud" video was Secretary Galvin’s comment in it, that an asset recovery for Madoff investors "may require an international effort."
A comprehensive effort to recover assets from a fraudster like Mr. Madoff will in my opinion, involve a variety of international legal issues. In Mr. Madoff’s case there could be issues involving global asset forfeiture; mutual legal assistance treaties; letters rogatory or tax information exchange agreements. Such issues could be highly relevant to an asset recovery effort targeting Mr. Madoff, since Mr. Madoff’s Ponzi scheme had cross-border elements. Mr. Madoff’s Ponzi scheme for example, used bank accounts in New York and London to launder assets, as I mentioned in my "Asset Search News Roundup: March 17, 2009". Meanwhile, "Madoff Trustee Locates Assets of $75 Million" reports that Mr. Madoff possesses $75 million in Gibraltar — which could be yet another cross-border element part of Mr. Madoff’s Ponzi scheme.
Copyright 2009 Fred L. Abrams