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Society family embroiled in Madoff scandal

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Walter Noel
Vanity Fair
scandal
Fairfield Greenwich Group
Bernie Madoff

For some people, Walter Noel had "made it" when he and his "five stunning daughters" were featured in Vanity Fair under the headline "Golden in Greenwich." His fortune and social standing were built on his ties to Bernard Madoff. His Fairfield Greenwich Group basically existed to place investor money with Madoff's firm.

The group is now out $7.5 billion, making him the biggest loser in this sordid affair. You have to wonder how this could happen. The New York Times notes a consultant who was hired by a fund two years ago, to look into Fairfield returns and found that it was "statistically impossible to replicate them." 

For more:
- here's the article 

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Fairfield Greenwich news from FierceFinance

Comments

Most of these people like Noel are utter incompetent idiots, they use their connections and standing to get where they are. I am amazed that they are able to succeed in anything. A FOF anything over 10% of its assets (let alone 100%) in any ONE investment or hedge fund or manager is outrageously retarded. He should be sued to smithereens by his investors (who are equally dumb for going along with that to begin with). And if you are going to do so, you got to do some diligence. He did none. He asked no questions. Three huge red flags: (i) money manager and custodian is same, (ii) secrecy, (iii) auditor is a tiny little firm with no other clients (that alone is clue to some wrongdoing), and (iv) you cannot be investing in equities and produced absolutely smooth (almost straight line) returns with a near 0 correlation to the equity markets...it is mathematically IMPOSSIBLE. PERIOD. END OF STORY.

The fact that FGG touted that very last fact as the centerpiece of their marketing is an indication that (i) they are spectacularly dumb, (ii) incredibly cavalier with their investors' money, and/or (iii) in cahoots w/ Madoff in the scam.

This has been an embarrassment to the profession. Madoff should already be in jail and not in bracelet w/ curfew.

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