▁fund ▁lost ▁$ 3 . 3 ▁billion , ▁representing ▁more ▁than ▁half ▁its ▁assets , ▁in ▁the ▁M ado ff ▁invest ment ▁sc andal . ▁ ▁When ▁the ▁scheme ▁was ▁un cover ed ▁in ▁December ▁ 2 0 0 8 , ▁Brad ▁Al ford , ▁who ▁runs ▁Al pha ▁Capital ▁Management ▁L LC , ▁which ▁helps ▁clients ▁choose ▁h edge ▁funds , ▁said : ▁ ▁It ' s ▁mind - b og g ling ▁that ▁people ▁like ▁T rem ont ▁... ▁had ▁been ▁doing ▁this ▁for ▁so ▁long . ▁It ' s ▁the ▁job ▁of ▁these ▁funds ▁of ▁funds ▁to ▁be ▁doing ▁due ▁dil ig ence . ▁That ' s ▁why ▁they ▁get ▁paid . ▁ ▁M ado ff ▁scheme ▁lit ig ation ▁In ▁April ▁ 2 0 1 0 , ▁Judge ▁Thomas ▁G ries a , ▁of ▁the ▁U . S . ▁District ▁Court ▁for ▁the ▁Southern ▁District ▁of ▁New ▁York ▁dismiss ed ▁a ▁law suit ▁by ▁T rem ont ▁Group ▁invest ors ▁against ▁T rem ont ' s ▁aud itor , ▁K PM G , ▁which ▁charged ▁that ▁K PM G ▁had ▁failed ▁to ▁discover ▁the ▁fra ud ▁in ▁its ▁aud its ▁of ▁T rem ont ▁and ▁was ▁therefore ▁li able ▁to ▁the ▁invest or . ▁ ▁Judge ▁G ries a ▁held ▁that ▁K PM G ▁could ▁not ▁be ▁su ed , ▁because ▁there ▁was ▁no ▁intent ▁to ▁dece ive . ▁He ▁wrote : ▁" Mer ely ▁alleg ing ▁that ▁the ▁aud itor ▁had ▁access ▁to ▁the ▁information ▁by ▁which ▁it