The complaint asserts that Fairfield's management were "blinded by the fees they were earning" and did not perform any due diligence that would have "burst their lucrative bubble."
In fact, its due diligence consisted largely of comparing one set of Madoff records – custodian records – against another set of Madoff generated records—his broker records, the complaint stated.
"His [Madoff's] whole money-management operation, including the money he managed for Fairfield over all or most of their eighteen year relationship, was nothing more than one big Ponzi scheme," the administrative complaint stated.
Noel has a mansion in Greenwich, Conn. As well as a fabulous hilltop retreat on the private Caribbean island of Mustique. He along with his wife and family have been featured in magazines, such as Town & Country, enjoying their glamorous lifestyle.
Meanwhile, U.S. Marshals Wednesday moved to seize Madoff assets including a yacht and Palm Beach house. At the moment, the Securities and Exchange Commission, the Department of Justice and the trustee representing Madoff's investors have not yet arrived at an agreement as to how seized assets will be managed and distributed to investors, sources involved in the process told ABCNews.com.
The U.S. Attorney in New York declined to comment on the issue and a spokesperson for trustee Irving Picard was not able to immediately returned a call for comment.