Conn. Town Sues over Madoff Losses

February 27, 2009 ( - The Connecticut town that was among the first to reveal its pension fund was an apparent victim of the Bernard Madoff investment fraud has slapped its investment adviser and its auditor with a lawsuit over the matter.

Attorney David Golub, representing the town of Fairfield’s pension board, said the suit was filed in Connecticut state court against adviser NEPC LLC and auditor KPMG, charging that the defendants had not properly investigated Madoff’s investment company, the Connecticut Post reported.

The town made two investments with Madoff, which officials said had grown to $42 million by last year.  

Authorities have charged Madoff with masterminding a $50-billion Ponzi scheme that has ensnared among its list of apparent victims a number of pension plans (See  Union Sues Over Madoff Pension Losses  and MOSERS Hit with $3.5M-Madoff Loss ).