The Town of Fairfield is taking legal action after it was named as one of Bernard Madoff?s alleged victims.

Officials say they have lost $42 million from their pension fund and have hired an attorney to recover some of the money lost in the alleged Ponzi scheme.

Fairfield has decided to terminate a contract with the pension advisor who recommended they keep their money invested with Madoff.

Police say they have started their own investigation into the alleged fraud. An attorney for the town says they are ready to charge anyone who may have been involved.

"It's a question of whether there were people who knew there was something criminal going on. Whether or not they knew it was a Ponzi scheme or thought it was criminal for some other reason and who helped Madoff raise billions of dollars,? says town attorney David Golub.

Fairfield's first selectman Ken Flatto says he wants to reassure town employees that their pensions are safe and secure.