Saturday, 27 December 2014
Last updated 3 days ago
Apr 5 2010 | 11:52am ET
A hedge fund’s lawsuit against KPMG, the auditor of Bernard Madoff feeder fund Tremont Partners, has been dismissed.
U.S. District Judge Thomas Griesa in New York ruled that Meridian Capital Partners would have to show actual intent to deceive, manipulate or defraud investors to move forward with the lawsuit. He did not bar the hedge fund from refilling its complaint.
“Merely alleging that the auditor had access to the information by which it could have discovered the fraud is not sufficient,” Griesa wrote. He set the bar extremely high, warning Meridian Capital that it would have to show that KPMG’s audits of Tremont, which had more than half of its assets invested in Madoff, were so bad that they were essentially “no audit at all.”
A group of Meridan Capital funds sued KPMG a year ago, accusing the accounting firm of failing to investigate Madoff’s own accountant, David Friehling, who has pleaded guilty to producing phony audits of Madoff’s firm. The hedge funds said KPMG’s failure to do so led it to issue false and misleading audits of Tremont’s funds in 2006 and 2007.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.