Madoff Trustee Sues NY Investment Company

Tuesday, Mar 1, 2011  |  Updated 8:45 PM EDT
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Madoff Trustee Sues NY Investment Company

AP

As Fairfield town officials deal with losing $42 million in municipal pension money it invested with Madoff, they are turning all Law and Order and have started their own criminal investigation.

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The trustee recovering assets for investors in Bernard Madoff's multi-billion dollar investment fraud has sued a New York-based investment management company that operated a hedge fund that invested heavily with Madoff.

The lawsuit was filed in December and unsealed on Monday in U.S. Bankruptcy Court in Manhattan.

It said Tremont helped funnel more than $4 billion into Madoff's Ponzi scheme through its Rye headquarters.

Trustee Irving Picard said Tremont managed the second largest group of feeder funds to assist Madoff in his fraud. The trustee said Tremont should return more than $2.1 billion it received in transfers from Madoff in return for its 15-year investment.

A spokesman for Tremont said the company "acted capably and appropriately.'' Madoff is serving a 150-year prison sentence after admitting the fraud in December 2009.

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