Why Feds Feel the Need to Grab Madoff Fast

by: Greg Newton

The Feds’ rush to incarcerate Bernard Madoff has nothing to do with the jewelry-laden gyftte boxes he shipped out to assorted friends and family around Christmas. Nope; they’re terrified Mr Plod, of Fairfield, Conn., will get him under lock and key first.

Fairfield officials have begun their own criminal investigation of Bernard Madoff as the town deals with losing $42 million in municipal pension money it invested with the disgraced New York financier.

Deputy Fairfield Police Chief Gary MacNamara says his department will investigate a fraud complaint filed by the town...he expects police to apply for an arrest warrant for Madoff when their investigation is complete.

Fairfield originally invested in Madoff in 1995, through Tremont’s Rye Broad Market fund; it eventually contributed around $20 million (depending on whether you believe the local press report that puts the sum at $17 million, or the one that puts it at $22 million. Details). Tremont founder Sandra Manzke took the account with her when she formed Maxam Capital Management in 2005.
So that would probably be who town attorney Richard Saxl has in mind when he said “officials will pursue other legal actions to try to recoup as much money as possible.” Always assuming Fairfield’s chief fiscal officer Paul Hiller (below) can find the relevant documents in his filing system.
AP via New Haven Register Jan. 13 2009
by Zachery Kouwe
DealBook (NYSE:NYT) Jan. 13 2008