Professor Elam

Wed March 8, 2017

Jon Corzine  testified he had no idea where the missing investor funds were. This from a former Goldman Partner and New Jersey Governor and Senator.

Now bankrupt IMF Global is suing its auditor PwC

claiming of course it was all the fault of the external auditor.

The article details the treatment of sale versus loan which is the heart of the matter. I am wondering whether a jury will understand the

ins and outs of such transactions.

Here is another example of auditor liability.PwC will have to show it had reasonable reliance for what it did.

This is a landmark case in that to my knowledge, this is the first time a brokerage firm simply lost client money and no one did much about it.  The BK trustee eventually recovered most of the investor funds but Corzine was never indicted for anything.