Legal News

Minnesota Accounting Firm on the Hook for Madoff and Petters

By Dan Slater

Tough times for the Minnesota accounting firm of McGladrey & Pullen: The firm has now been sued in relation to the both the Bernie Madoff and Tom Petters Ponzi schemes. Here’s a report from the StarTrib.

Last week, an investment fund that placed $280 million with Madoff sued in state court in Connecticut, saying its auditors — Goldstein Golub Kessler, in 2006, and McGladrey & Pullen, in 2007 — failed to detect the fraud. And, in October, the Ellerbrock Family Trust filed a similar suit in a Minnesota federal court saying that McGladrey & Pullen failed to conduct thorough audits or take other actions that would have uncovered alleged fraud by the Petters companies. (For LB background on Petters, click here.)

McGladrey’s general counsel did not respond to the StarTrib’s request for comment.

Full post as published by Law Blog - WSJ.com on February 04, 2009 (boomark / email).