Fairfield Sentry Limited

Investigation and pursuit of $6bn in losses; $700mm recovered to date

Issue:

KRyS Global was appointed as liquidators over Fairfield Sentry, a BVI based fund, which had invested in the Bernard Madoff Ponzi scheme and suffered a net loss of $6 billion. At the date of KRyS Global’s appointment, the fund was the subject of litigation by the US Chapter 11 bankruptcy trustee for Bernard L. Madoff Investment Securities and had no unencumbered assets. Initial inquiries determined that for any assets to be distributed to investors, a litigation driven strategy would need to be pursued.

Resolution:

KRyS Global negotiated and resolved the litigation with the Trustee which included a SIPC claim in the Madoff bankruptcy and a sharing mechanism for any recoveries from former redeemers of Fairfield Sentry. There have been leading decisions in this matter in the Privy Council and Second Circuit Court of Appeal.

Value Added:

As a result of the liquidators’ actions, recoveries of $700mm have been collected to date.