PE Firm Founder Sues Madoff Feeder Fund

Law360, New York (December 13, 2010, 5:41 PM EST) -- John Patience, founder of private equity firm Crabtree Partners LLC, has filed suit against Tremont Group Holdings Inc., saying that the feeder fund entrusted his $5 million investment to Bernard L. Madoff's firm without conducting the necessary oversight of its operations.

The complaint, lodged Friday in the U.S. District Court for the Southern District of New York, alleges that Tremont breached its fiduciary duties and contractual obligations to investors by misrepresenting the amount of oversight it exercised and ignoring a slew of obvious red flags at...
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