Frontline Report on Madoff Portrays Fairfield Greenwich Inaccurately

Frontline Report on Madoff Portrays Fairfield Greenwich Inaccurately

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

CONTACT: 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

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