December 17, 2008

Labaton Sucharow LLP Investigating Madoff Ponzi Scheme

NEW YORK (December 17, 2008) - Labaton Sucharow LLP is investigating possible legal action on behalf of aggrieved investors in the Madoff Ponzi scheme. On December 11, 2008, Bernard Madoff admitted that he had defrauded investors in excess of $50 billion in a Ponzi scheme which used the investments of new clients to pay fictitious returns to pre-existing clients. The FBI arrested Madoff and the SEC has intervened, freezing any remaining funds.

A large part of the $50 billion invested in Madoff originated from investors in so-called feeder funds which received lucrative commissions from Madoff. Some of the principal feeder funds reported to have losses include, Fairfield Sentry Ltd. Fund (Fairfield Greenwich Group), Optimal Investment Services (Santander), Tremont Advisors/Tremont Capital Management's Rye Select Fund (USA), Kingate Global Fund Ltd. (UK), Fix Asset Management and Thema (Swiss), Maxam Capital Management (USA), Ascott Partners LLC (USA), and Bramdean Alternatives (UK).

Labaton Sucharow is investigating whether these feeder funds conducted adequate due diligence before investing in Madoff in light of the multiple red flags that are now know to have been evident, including, (i) the absence of a serious or reputable auditor, (ii) the absence of an outside clearing agent, and (iii) the overly consistent returns.

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