Galvin: Hedge Fund Turned Blind Eye To Madoff

On behalf of Massachusetts investors, Secretary of State William Galvin has filed a complaint alleging a Connecticut hedge fund turned a blind eye as it funneled investor money to Bernard Madoff.

The Commonwealth's top securities regulator says Fairfield Greenwich Group did not live up to its responsibility to investors as it fed billions of dollars to the Ponzi scheme run by Bernard Madoff.

Secretary of State William Galvin says Fairfield executives were earning millions dollars in fees, and therefore did not make sure Madoff was actually investing the client money they were giving him.

"It's once again an illustration of where people in the financial services industry put profits first over investors," Galvin says.

However Fairfield Greenwich says Galvin's allegations are misleading and that it intends to vigorously contest them.