Hedge Funds Lose Case Against Auditor Tied to Madoff
Thursday, April 1, 2010 : Permalink
New York (HedgeCo.net) – The U.S. District Court in Manhattan has ruled that KPMG LLP., cannot be sued for its ties with a hedge fund which was found to be a “feeder fund” for Madoff.
The accounting firm won dismissal yesterday, “Because it lacked actual intent to deceive, manipulate, or defraud the investors in the funds that brought the suit.” Judge Thomas Griesa said, according to a Reuters report.
KPMG audited hedge fund manager Tremont Partners, which Meridian Horizon Fund and other affiliated hedge funds claim received fees for investing enormous amounts of money with Madoff, Reuters said.
The Meridian hedge funds claim that the auditors should have noticed something wrong, as Tremont lost more than $3 billion investing in the ponzi scheme. However, the Judge ruled, that, “Merely alleging that the auditor had access to the information by which it could have discovered the fraud is not sufficient.”
Alex Akesson
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alex@hedgeco.net
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