Fund due diligence attacked as Madoff lawsuits mount

risk-090301-04-gif

Investors who lost billions of dollars to Bernard Madoff have filed several class action lawsuits alleging massive due diligence failures by fund management firms that placed money into the alleged $50 billion Ponzi scheme, even though scant detail has emerged on how the fraud worked.

On February 20, a group of investors filed a class action suit against New York-based Tremont Group Holdings, a feeder fund that had $3.3 billion of client assets invested with Bernard Madoff Investment Securities