Mass Mutual unit battered by Madoff fallout

Mass Mutual is joining the ranks of major insurers burned in the Bernard Madoff scandal. Tremont Group Holdings Inc., which is owned by New York-based OppenheimerFunds Inc., a subsidiary of Massachusetts Mutual Life Insurance Co. of Springfield, had $3.3 billion invested with him — more than half of its total $5.8 billion under management. Rye (N.Y.) Investment Management, a unit under Tremont, had $3.1 billion — virtually all of its assets — invested with Mr. Madoff, according to Bloomberg. “This fraud claimed thousands of victims, Tremont among them,” Montieth Illingworth, spokesman for Tremont Group Holdings, said in a statement. “It was designed and executed to deceive individuals and institutions alike. We are focusing on recovering our clients’ assets and are in contact with law enforcement and the SEC regarding their investigations.” Among those who lost money is Sandra Manzke, founder of Tremont, and Robert Schulman, who led Tremont as its chairman until this summer, according to the Journal. Ms. Manzke, who told the Journal she started investing with Mr. Madoff shortly after starting Tremont in 1984, said that she, her investors and employees have lost a total of $280 million in Mr. Madoff’s alleged fraud scheme. Mr. Schulman also told the Journal that he and his friends and family have lost “significant assets.”