In case you were wondering how Fairfield Greenwich Group’s principals paid for their lives (18,000 sq ft villas in Mustique, G3s, race horses, etc.), here’s one example.
According to the Mass fraud suit against FGG, Andres Piedrahita paid himself $45 million in 2007 alone. Walter Noel and Jeffrey Tucker, meanwhile, apparently added less value. They only took home $30 million apiece.
Remember: FGG charged fees of 1% of assets and 20% of gains. The fees on the money given to Madoff generated more than $100 million a year for the past five years alone. Unfortunately, the gains were fictitious, and the assets are gone.