Hedge Fund Auditor Settles Petters Case

Aug 3 2010 | 3:45am ET

A Florida accounting firm has settled a lawsuit filed against it by two hedge funds that lost money in the Thomas Petters Ponzi scheme.

Kaufman Rossin & Co. agreed to pay $9.6 million to two hedge funds managed by Palm Beach Financial Partners. The bankruptcy trustee for the hedge funds claimed that the Miami accountants were negligent in failing to detect Petters’ Ponzi scheme, in a malpractice lawsuit filed last year. Palm Beach Financial invested $1.1 billion in Petters’ $3.65 billion fraud. Petters is currently serving a 50-year prison sentence after he was convicted last year.

Michael Budwick, a lawyer for the Palm Beach Financial trustee, said he plans to file “many more lawsuits” to recoup the money lost.

For its part, Kaufman Rosen’s insurance policy covers the settlement. The trustee originally sought $1 billion from the auditor.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Publisher's Note