A Minnesota accounting firm has been hit by lawsuits alleging that it failed to detect problems in two separate Ponzi schemes -- the purported $50 billion investment scam by financier Bernard Madoff and the $3.5 billion alleged "electronics" scheme by Thomas Petters. The suits against McGladrey & Pullen and similar suits stemming from the Madoff scandal against accounting firms KPMG, Ernst & Young and BDO Seidman point up the likely spread of litigation as financial victims attempt to recover massive losses.
Accounting Firms Take New Hits Over Madoff, Other Ponzi Schemes
The National Law Journal
February 5, 2009