Madoff Trustee Sues Fairfield Greenwich Group For $3.2 Billion

Madoff trustee Irving Picard continues to sue beneficiaries of Madoff’s fraud for ill-gotten gains, and he’s now trained his guns on the biggest beneficiary of all: Fairfield Greenwich Group. He wants $3.2 billion back–or all the money FGG took off the table on behalf of clients from 2002 on (including $1.2 billion in the final three months).

The complaint (below) includes this detail, which illustrates just how painstaking FGG’s due diligence was:

[T]he funds’ account records showed prices for 280 stock trades that did not match the actual price range for those stocks when the trades supposedly occurred. Some trades were shown as occurring on days that were actually holidays or weekends, according to the complaint.

“These trades were clearly fictional,” the complaint said.

No word yet on whether that $3.2 billion includes the $500+ million FGG was paid for giving the money to Madoff and making sure he wasn’t running a Ponzi scheme.

More in the NYT >

Madoff Trustee’s Lawsuit Against Fairfield Greenwich

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