A hedge fund at the center of the Bernie Madoff scandal got socked a second time this week as Massachusetts state regulators accused the fund of fraud and of lying about the due diligence it performed on Madoff.

According to the complaint filed against Fairfield Greenwich by Massachusetts Secretary of the Commonwealth Bill Galvin, execs at the firm were motivated more by the high fees they raked in than ensuring their investors got a fair shake.

“Fairfield’s due diligence was largely reactive – responding to investor questions with just enough detail to assuage their concerns,” according to the complaint.

The accusations come on the heels of a complaint filed this week by the town of Fairfield, Conn., which resulted in several Fairfield Greenwich executives having their assets frozen.

Fairfield Greenwich yesterday blasted the Massachusetts allegations, calling them “false and misleading” and the accusations “sensational.” The company also accused Galvin of making “erroneous allegations,” such as that there was no disclosure that Madoff was serving custodian of his own assets.

Fairfield Greenwich officials also protested a conversation included in the complaint in which Madoff is allegedly coaching two Fairfield Greenwich execs about what to say to the officials at the Securities and Exchange Commission who were investigating Madoff at the behest of whistleblower Harry Markopolos.

According to the complaint, Madoff tells the execs not be to “exact” on certain details of their relationship with him, and to be “casual” in their conversation with the SEC. He also says to tell the SEC that he has “Chinese Walls” between his brokerage and investment arms.

The complaint “conveniently leaves out the fact that the employee specifically reported his telephone conversation with Madoff to the SEC at that time,” Fairfield said in a statement.