Wednesday, 25 November 2015
Last updated 1 hour ago
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.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…