NEW YORK, May 12 /PRNewswire/ -- The following is a statement being issued on
behalf of Fairfield Greenwich:
Frontline's television program, "The Madoff Affair," broadcast on PBS tonight,
included several untrue assertions about Fairfield Greenwich Group (FGG).
Contrary to statements made on the program, FGG conducted thorough due
diligence of Bernard L. Madoff Investment Securities and its operations. From
the time FGG made an initial "test" investment with Madoff in 1989 and
launched the Fairfield Sentry fund in 1990, FGG continually and regularly
enhanced its diligence and risk monitoring capabilities to keep pace with
evolving industry standards and growth of the Sentry funds. Throughout these
years, FGG performed extensive oversight through quantitative monitoring based
on trade confirmations and monthly brokerage statements, price checking, and
asset verification. And as noted in legal papers recently filed in response
to an administrative complaint in Massachusetts, FGG's diligence and risk
management practices were consistently in line with what it told investors
about its funds. (The document is available at:
https://www.fggus.com/pdf/Answer_Part_1_of_2.pdf).
The Frontline program contained several other stark errors, as well. For
example:
1. Frontline inaccurately portrayed a December 2005 call between Madoff
and
FGG personnel, in preparation for an interview with the SEC. Frontline
failed to disclose that, prior to the call, FGG had requested
permission
from the SEC to speak with Madoff, and that FGG people discussed the
Madoff call with the SEC afterward. Most important, records clearly
show
that FGG personnel responded truthfully to all of the SEC's
questions.
2. Frontline erroneously portrayed an on-site visit to Madoff's office
by FGG executive Jeffrey Tucker, implying that Tucker never received
verification of Madoff's trading. In fact, Tucker was shown an
electronic screen with DTC records of Fairfield client trades.
3. Frontline erroneously reported that FGG's due diligence operation
was located solely in Bermuda. In fact, as Frontline producers were
informed, FGG professionals actively monitored the investment with
Madoff
and conducted due diligence both in Bermuda and at the firm's New
York headquarters.
4. Frontline erroneously implied that every feeder fund failed to disclose
Madoff's name in marketing materials. In fact, Fairfield's
marketing materials did refer to Madoff by name.
The Frontline program failed to get to the heart of the mystery that still
surrounds the methods and motivations of Bernard Madoff. Unable to do so, the
program regrettably settled for blaming the victims.
SOURCE Fairfield Greenwich Group
Thomas Mulligan, +1-212-573-6100, thomas_mulligan@sitrick.com; or Seth Faison,
+1-212-573-6100, seth_faison@sitrick.com, both of Sitrick and Company, for
Fairfield Greenwich Group
