A letter dated December 22, 2008 and sent from Fairfield Sentry Limited to its investors recently surfaced here.  The fund, part of Fairfield Greenwich Group, had invested in excess of $7 billion in Bernard Madoff Securities, making it Madoff’s largest feeder fund investor.  In wake of the surrounding facts which have surfaced in the case, we have received a rough rewrite of that letter to investors which includes several suggested revisions.  It is provided below…

FAIRFIELD SENTRY LIMITED
Romasco Place, Wickhams Cay 1
Road Town, Tortola
British Virgin Islands, VG 1110
December 22, 2008

Dear Shareholder,

Suspension *Edit: Elimination of the Calculation of Net Asset Value
Reference is made to the extraordinary events of last week regarding Bernard L. Madoff Investments Securities LLC (“Madoff”). As you are most likely aware, on December 11, 2008 Bernard Madoff was arrested and charged with securities fraud for operating in essence a giant Ponzi scheme. It has been alleged that Madoff’s fraud involved a loss in both cash and securities of possibly US$50 billion.

As you will have read in the press, Fairfield Sentry Limited (the “Company”) was significantly exposed to *Edit: blindly dumped all of your money into Madoff.  At this point in time the value of the Company’s investment in Madoff is not certain *Edit: basically a pipe dream. There may be residual assets *Edit: presumably, proceeds from the sale of Ruth Madoff’s jewelry collection in Madoff to be distributed or, alternatively, there may be no assets *Edit: you’ve been totally had.

With the view to acting in the best interests of the Company and all of its shareholders and creditors *Edit: To save what little dignity we have left, the Board of Directors *Edit: Glorified “Yes” Men of the Company (the “Board” ) has suspended the calculation *Edit: fabrication of net asset value with a corresponding suspension of redemptions and subscriptions pursuant to Article 11(4) of the Articles of the Association of the Company, due to the fact that the Board determined that  (i) that circumstances exist as a result of which in their opinion it is not reasonably practicable for the Company to dispose of investments or that any such disposal would be materially prejudicial to shareholders, (ii) that a breakdown has occurred in the means normally employed in ascertaining the value of investments of the Company, (iii) that the value of the investments of the Company cannot reasonably or fairly be ascertained and (iv) that the Company is unable to repatriate funds required for the purpose of making payments due on redemption of shares *Edit: okay, we get it, blah, blah, blah, maybe ignorance does not equal bliss. As such, pursuant to the powers contained in the Articles of Association of the Company , the Board has suspended the determination of the net asset value. As a result of such suspension, all subscriptions into and redemptions from the Company have been suspended *Edit: good luck paying this month’s electric bill! With respect to redemption requests received for the November 30, 2008 dealing date, the payment of these proceeds of redemption have been similarly suspended pursuant to the powers contained in the Articles of Association of the Company *Edit: some document we just found out we have!

The Company has retained counsel in the British Virgin Islands *Edit: Retreat and the United States to represent its interests. These counsel will advise as to what action should be taken to ensure the Company’s interests in the remaining assets of Madoff are represented, to ensure an orderly running *Edit: potential winding down of the affairs of the Company and to ensure that all shareholders and creditors are treated equitably and fairly *Edit: you are all equally screwed. In this regard and as advised by counsel, we are not able to respond to requests for information *Edit: death threats, complaints, legal action by individual shareholders at this time. Rather, information will be provided to all shareholders to ensure that no one shareholder is at an advantage. We note that the manager to the Company, Fairfield Greenwich (Bermuda) Limited, has waived all fees until further notice *Edit: we emerge from hiding. We *Edit: CNBC will endeavour to keep you advised of developments with respect to the Company.

Yours faithfully *Edit: shamefully,

The Board of Directors