MA Gets $8M Settlement over Madoff Investments

September 8, 2009 ( - Massachusetts Secretary of State William Galvin's office has settled for $8 million with financial swindler Bernard Madoff's feeder fund Fairfield Greenwich Group, becoming the first state regulator to reach such an agreement, according to Reuters.

A consent order linked to on Galvin’s Web site said Fairfield agreed to the settlement without admitting to or denying any of the allegations brought by Galvin’s office. The allegations related to three funds – Fairfield Sentry Limited, Greenwich Sentry L.P., and Greenwich Sentry Partners L.P. – which the order says were offered and sold to investors in Massachusetts.

Ninety-five percent or more of the Sentry funds’ assets were allegedly held and managed by Bernard L. Madoff Securities LLC.

“This Fairfield settlement, which provides restitution and interest for Massachusetts investors, represents the first investor relief ordered by a regulator in the Madoff scandal and I hope that it will become a template for other resolutions,” Galvin told Reuters in a telephone interview.

The consent order is here .