You can’t accuse Fairfield Greenwich Group of not trying to point the finger at others for failing to detect the incineration of $7.3 billion of their clients’ money. So far, FGG has sued:
- Bernie Madoff
- FGG’s accountants
And now, according to Semana.com profile of FGG partner Andres Piedrahita, FGG is considering suing the SEC, too:
Piedrahíta and his family are also thinking of suing U.S. authorities for negligence in the oversight that they were required to exercise over Madoff’s activities.
They might as well try. At some point, however, FGG will have to answer for the fact that it continued to shovel client money at Madoff long after many other Wall Street firms ran away screaming–and long after private equity firms that were considering buying a slice of FGG discontinued talks after FGG couldn’t (or wouldn’t) explain how Madoff generated his returns.
Most of FGG’s critics these days aren’t accusing the firm of knowingly being complicit in the fraud. They’re accusing it of closing its eyes, shoving its fingers in its ears, and humming…while handing money to Madoff that generated $500 million in (fraudulently conveyed) fees in the past five years alone.