Accountants’ Liability For Financial Or Investment Losses

You probably understand that when your own accountant performs negligent work that causes you financial losses-such as making tax preparation mistakes or offering bad business advice-you have legal recourse. But it is less commonly known that an accountant could be responsible for your financial or investment loss even when you didn’t hire them straight. You can document a lawsuit against an accountant, you did not directly hire.

The latter situation often occurs in the framework of investment losses. THE BUSINESS ENTERPRISE Trial Group happens to be representing two clients that filed lawsuits against accountants they did not hire directly, but whose accounting advice and statements they nonetheless relied upon. In both full cases, our clients allege that their reliance on the third-party accountant caused them to suffer millions of dollars in losses. If you think an accountant may have added to your financial or investment loss, the Business Trial Group may help you determine if you have an incident.

We represent IDJB Investments, the majority shareholder and major creditor of Physicians United Plan, Inc. (PUP), a Florida Medicare Advantage Plan, within an auditor and accountant malpractice lawsuit against McGladrey, a major accounting and auditing company. The Orlando, Florida malpractice lawsuit alleges that McGladrey’s bad accounting and auditing practices lead to PUP’s failure and led to IDJB suffering huge amount of money of a financial loss.

While PUP hired McGladrey, IDJB alleged damages due to its reliance on McGladrey’s accounting and auditing representations. PUP was formed in Florida in 2005. IDJB was PUP’s major buyer and originally held 100% of the PUP’s stocks. As PUP grew, the business hired McGladrey as its accounting and auditing company to monitor PUP so that it could develop, stay compliant with Florida law, and steer clear of insolvency. Under Florida law, the PUP’s growth necessitated bigger capital investments. One of many ways it searched for to meet capital requirements was through some transactions with the Pacific Western Bank Corporation (PACWEST). The PACWEST transactions were presented to and approved by McGladrey.

While McGladrey assured PUP that the PACWEST transactions complied with Florida’s statutory requirements, they comply did not, resulting in a misstatement of PUP’s true financial condition. Following an audit by the state of Florida and adjustments to PUP’s funds, PUP was decided to be insolvent by the constant state and, ultimately, failed.

IDJB promises that McGladrey knew or should have known that the PACWEST investment plan did not comply with Florida’s statutory requirements and would have negative financial consequences for PUP-and by extension, IDJB. The lawsuit asserts that if IDJB have been timely made alert to PUP’s true financial condition, rather than relying upon McGladrey’s fake and deceptive approvals and audits, IDJB could have taken action to protect its interests. 2.4 million investment. The ongoing company has been a Ponzi scheme and the buyer’s money was lost. Our client learned that the company had no sales at the time he invested. According to the lawsuit, the plaintiff was considering purchasing an ongoing company called Rollaguard Security.

As part of his homework, our client was given financial claims from Rollaguard’s outside accounting firm. 2.4 million investment in the company. 2 yrs later, Rollaguard filed for bankruptcy. Since that time, our customer learned that the company got no sales at that time he spent. The sales were fabricated and the financial statements he was provided appear to have been false. The West Palm Beach, Florida accountant malpractice lawsuit alleges that Rollaguard’s accountants knew-or should have known-that the financial statements they ready and provided to your client were wrong, misleading, and included multiple errors.

  • A bond or minimal net capital
  • Roll it in, or move it out
  • What should we do heading ahead
  • Items of significant value like artwork, antiques, or jewelry

Because our customer relied on the materially false and deceptive financial statements to produce a decision to invest in Rollaguard, the lawsuit claims Rollaguard’s accountants are liable for our client’s investment deficits. The two Business Trial Group lawsuits referred to above assert similar claims to the ones that investors have asserted against PricewaterhouseCoopers (PwC) and Ernst & Young for their role in the Bernie Madoff investment scam. 3.2 billion Madoff Ponzi plans.

Fairfield investors submitted a lawsuit against PwC, and Tremont investors submitted suit against Ernst & Young. The cases claimed that PwC/Ernst & Young should have uncovered the deceptive Madoff possessions, which their failure to perform proper audits triggered the traders’ deficits. 55 million to stay the investor lawsuit. 25 million. These lawsuits provide additional types of the circumstances under which parties can document a lawsuit against an accountant they didn’t hire.

The preceding cases show an individual or business need not have directly hired an accountant to be able to suffer the consequences of the accountant’s negligence. Pay for results, not hours. Regardless of how complex an accountant’s errors, omissions, or misconduct, our Florida accountant malpractice attorneys focus on a contingency-fee basis. You won’t ever pay up-front fees; and you will pay no fees in any way until we resolve your case successfully.