Fairfield Greenwich Group Sued by Mass. Regulator

Massachusetts regulators have sued the Fairfield Greenwich Group, one of the earliest and largest of these so-called feeder fund managers, for fraud, saying it had repeatedly misled investors about how diligently it checked out Mr. Madoff’s operations over the years.

“Fairfield’s complete disregard of its fiduciary duties to its investors and its flagrant and recurring misrepresentations to its investors rises to the level of fraud,” said lawyers for William Galvin secretary of state for Massachusetts and its top securities regulator, in an administrative complaint filed Wednesday.