MassMutual Hedge Fund loses $3 Billion+ to Madoff Swindle

Now-confessed swindler got MassMutual funds; Investors told 'we were all victimized' by Madoff

A hedge fund group owned by Massachusetts Mutual Life Insurance Co., of Springfield, has lost all of its clients' money - more than $3 billion - to Bernard L. Madoff, the New York trader who confessed last week to losing $50 billion of his investors' funds in a Ponzi scheme... The hedge fund group, Rye Investment Management, had retained Madoff as the sole manager of its funds, which reported assets of $3.5 billion in April. Rye is a division of MassMutual's Tremont Group Holdings Inc. in Rye, N.Y., which places wealthy clients and institutions, such as pension funds, into hedge funds and with exclusive investors like Madoff.

In one letter to clients Friday, Rye Investment said, "Needless to say, our level of anger and dismay over the apparent betrayal by Mr. Madoff and his organization of his 14-year relationship with Tremont is immeasurable..."

Boston Globe: MassMutual Hedge Fund loses $3 Billion+ to Madoff Swindle