Saturday, March 29, 2014

PwC Sued for $1 Billion over Faulty Advice in MF Global Collapse



PwC Sued for $1 Billion over Faulty Advice in MF Global Collapse

from REUTERS.INDIA 28 Mar 2014, 6:52 PM PDT
NEW YORK (Reuters)—The administrator of MF Global Holdings Ltd's bankruptcy plan on Friday sued the auditor PricewaterhouseCoopers for at least $1 billion over its advice on a $6.3 billion European sovereign debt investment that helped fuel the brokerage's rapid demise.

According to a complaint filed in U.S. District Court in Manhattan, PwC committed professional malpractice by offering "flatly erroneous" advice concerning, and approval of, the off-balance-sheet accounting treatment for the debt by MF Global and its then-chief executive, Jon Corzine.

The complaint said PwC knew that the investment would add significant risk to MF Global's already weak finances. It said MF Global would not have taken on the exposure, which allowed it to book immediate revenue, had it received sound advice.

MF Global Holdings Ltd
Soros Fund Management was the buyer of assets, post-bankruptcy for MF Global Holdings Ltd.

Note: George Soros is the founder of Soros Fund Management, and was the chairman for the Foundation to Promote Open Society.
Foundation to Promote Open Society was a funder for the Committee for Economic Development.
Paul S. Atkins is a trustee at the Committee for Economic Development, and was a partner at PricewaterhouseCoopers.
Samuel A. DiPiazza Jr. was a trustee at the Committee for Economic Development, and the global CEO for PricewaterhouseCoopers.
Nicholas G. Moore is a trustee at the Committee for Economic Development, and was the global chairman for PricewaterhouseCoopers.








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