A Connecticut company that has been called a “feeder fund” for Bernie Madoff is being sued as the ripple effect of the $50 million Ponzi scheme grows.
Massachusetts Secretary of State William Galvin filed an administrative complaint Wednesday against Fairfield Greenwich Group looking to recoup money Bay State investors lost.
Galvin claims the company misrepresented its lack of knowledge about Madoff's business operations.
Fairfield Greenwich Group invested more than 95 percent of its Sentry Funds' $7.2 billion in assets in Bernard L. Madoff Investment Securities.
Galvin claims the company was blinded by the fees it was earning from Madoff's purported returns and did not do enough to protect its clients.
Fairfield Greenwich said in a statement the allegations are false and misleading and it intends to "vigorously" contest them.
"FGG is appalled by the Madoff losses suffered by its investors, including its employees and the three investors who reside in Massachusetts," the statement said.
