Fairfield Greenwich, the mammoth hedge fund that lost $7.5 billion on Madoff “investments”, was told pointblank by a potential buyer in 2004 of concerns about placing money with Madoff.
Yet they kept doing it. Thus, they were told, and ignored it.
Says our tipster: Fairfield Greenwich “Stonewalled like you couldn’t believe.” Judging from everything that’s been made public, now, however, we can believe it. He’s also confident that there are memos inside Fairfield Greenwich that will prove a fatal dagger to them, once uncovered by the FBI.
Bottom line: Given the questions raised during multiple due diligence examinations, at least dating back to 2004, there’s no way Fairfield Greenwhich, when presented with direct concerns about their investments, didn’t know of something highly suspect going on with their star work horse Bernie Madoff.
“Sometimes the gutter wears a tuxedo.”