September 24, 2018

Lawyers Suing Moss Adams Remain Unflappable After Judge Tells Them to Get Lost

As you may or may not remember, the largest Ponzi Scheme in the state of Washington was perpetrated by a man named Frederick Darren Berg. His company, Meridian Group, bilked investors out of $150 million or so and now the bankruptcy trustee for the company is trying to recover some of those funds. One of their targets is Moss Adams, the auditor of the relevant entities; the trustee has been in dogged pursuit of the firm to cough up some money for their role for a couple years now.
While that seems like an easy enough task, the Meridian lawyers have run into some obstacles. Like their super mean opposition, judges who want stuff like written documents, and other judges who sense some opportunism going on:
In a ruling Thursday, Judge Karen Overstreet wrote that the suit by Meridian bankruptcy trustee Mark Calvert properly belongs in King County Superior Court, where the trustee in 2011 first filed his claim that faulty Moss Adams audits enabled the fraud at Meridian to go undetected for years.
Calvert voluntarily dismissed the Superior Court suit after the judge in that case fined him $74,000 in July 2012 for not complying with her instructions to document how individual investors relied on the CPA firm’s Meridian audits.
In Thursday’s ruling, bankruptcy judge Overstreet wrote that “the Trustee’s actions with regard to the State Court Action support Moss Adams’ contention that his filing of the action in this Court was for the purpose of forum shopping.”
Lesser lawyers might take a look at this dire situation, yell at their assistants, call it a day, and move on to other litigious matters, but not these fellas. They remain confident and unswayed:
Calvert’s attorney, Michael Avenatti, said in an email that Overstreet’s ruling means “the case was dismissed on jurisdictional grounds only. It does not relate in any way to the merits.”
He added: “We look forward to continuing the litigation and bringing Moss Adams’ conduct to light.”
You have to admire the gusto.

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Jeremy Newman Just Wants to Be Clear, We are NOT Declaring Victory Over Banco Espirito…YET

BDO_International.pngAfter throwing an all night rager last week when BDO International Global Coordination skated on the $521M verdict, Jeremy Newman, BDO Boss, wants everybody to chill.

Newman said he had always been confident that BDO International’s arms-length approach would be proved but added: ‘There is still the risk of a further appeal, as well as the appeal by the US firm.’

See? Staying cool. Not out of the woods yet. But when we beat those bastards on appeal, then we are getting down.

Newman stays cool after BDO victory
[Accountancy Age]

Funny homeless guy sign

You Know That Guy Who Panhandles on Your Block? He May Be a CPA.

Anybody out there looking to help their fellow CPA, who’s down on his luck?
The Wall St. Journal is reporting that the former BDO Seidman LLP CEO, Denis Field may have to pay back a portion of $180 million that is being sought by prosecutors in the tax shelter case that involves Field and six others.
Natch, everybody has denied wrongdoing. The charges include conspiracy and tax evasion. Good luck with that.

Prosecutors Seek Ex-BDO Seidman CEO, 6 Others To Forfeit $180M