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