The town of Fairfield has launched its own criminal investigation of disgraced financier Bernard Madoff, after losing more than $40 million of its pension fund money. WNPR's Harriet Jones reports.
The cash, amounting to around 15 percent of Fairfield’s municipal pension fund assets disappeared in the $50 billion Ponzi scheme allegedly perpetrated by Madoff. Lawyers for the town say in addition to the criminal investigation they’ll pursue civil remedies in state court, in an attempt to recoup what they can. They say that effort may also target advisers, hedge fund managers and auditors, who may have failed in their due diligence.
Fairfield's First Selectman Ken Flatto:
"This is not a one person fraud. I believe this is a massive fraud, I believe other people were involved in it. One of the reasons that we thought to turn it over to the police department from our Connecticut point of view is because there are so many record and so many different client files in our town of Fairfield I can’t imagine any one person was solely responsible for this."
Local police say once their investigation is complete, they intend to apply for an arrest warrant for Madoff, as well as any one else they feel is implicated in the case. The town recently terminated its contract with New England Pension Consultants - the firm advised Fairfield to place its assets in hedge funds, and issued no warning about the Madoff investment.