As it turns out, the Fairfield Greenwich Group’s settlement with Massachusetts authorites will cost the Madoff feeder fund just $8 million, include $500,000 to pay the cost of the the investigation.
To put that figure in perspective, FGG marketer Andres Piedrahita was paid $45 million in 2007 alone. In other words, the FGG fine is less than one-fifth of what one partner at FGG took home in just one year.
That means that, even after the scandal became public, FGG’s partners did pretty well for themselves by handing investor money over to Madoff while apparently never really performing the diligence they promised investors. Nice work if you can get it.