September 17, 2019

SingerLewak Sued By Financially Troubled Former Client For Failing To Detect Fraud

Oh geez, not this again. When will clients just get over it?

Here's the bad news for SingerLewak coming out of SoCal:

The financially troubled Los Angeles Memorial Coliseum Commission is suing its former auditor for more than $11 million, alleging that it failed to detect errors in financial statements between 2007 and 2011, a time when alleged corruption ensnared the taxpayer-owned agency.

The suit, filed Thursday in Los Angeles Superior Court, says California-based SingerLewak’s “incompetent auditing and accounting services effectively protected the corrupt former employees and promoters.”

“Its grossly insufficient management letters and disclosures to the Coliseum … left the commissioners … under the control of the corrupt former management employees,” the lawsuit said.

Here's the deal: the long troubled LA Coliseum apparently had some issues with bribery, embezzlement, kickbacks and conflicts of interest within, and the coliseum seems to think SingerLewak should have been able to spot these while they were checking boxes and assembling workpapers. SingerLewak disagrees, saying in a statement "our audits were performed properly and with the highest level of professionalism in every respect. We will aggressively defend the allegations in this suit and are confident that the evidence will show the allegations to be false.”

The lawsuit alleges that auditing and accounting services provided to the Coliseum by SingerLewak were "performed in a dilatory and grossly negligent fashion and in violation of auditing and accounting principals and standards."

The full text of the suit can be found here.

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