Where has the SEC been in pursuing funds of funds, other money managers and consultants that allegedly placed client money with Bernard L. Madoff for investment?
The question is prompted by an order issued by the Connecticut Superior Court in Bridgeport on March 30 temporarily freezing the assets of Tremont Group Holdings Inc., Maxam Capital Management LLC and others in a lawsuit filed over alleged losses in the Madoff scandal by the Town of Fairfield and two Fairfield pension funds.
The town and its pension funds do not accept that the defendants were deceived by Madoff. They allege the defendants were all participants in an illegal investment scheme headed by Madoff, according to the suit filed by the Fairfield group's attorney, David S. Golub of the Silver Golub Tietell LLP law firm.
The complaint says the defendants' enormous greed caused them to knowingly aid and abet and participate in Madoff's criminal conduct.
The allegations were enough for the court for it to issue the temporary restraining order on the assets of the defendants.
Tremont believes the claims in this complaint are wholly without merit and will vigorously defend itself, Montieth Illingworth, spokesman, said in a statement.
Maxam officials couldn't be reached.
So far, the Securities and Exchange Commission has brought no action against any of the consultants or money mangers involved with Madoff, by recommending his firm, or making investments in it on behalf of clients. The only external firm the SEC has taken action against is Madoff's auditor, Friehling & Horowitz CPAs P.C.
Kevin Callahan, SEC spokesman, said the Madoff investigation is continuing but SEC officials cannot comment.
In such a massive case, the SEC should speed its efforts to assist investors in getting to the bottom of the scandal. It should be leading the charge in the investigation of the firms that funneled huge sums of money to Madoff.