A state court jury found Ernst & Young liable for millions of dollars in losses a Washington investment firm took from the collapse of Bernard Madoff’s Ponzi scheme.
The jury said Ernst was negligent in its work as auditor for a feeder fund that pooled investors’ cash directing it to Madoff’s . FutureSelect claimed that Ernst & Young, as auditor, supplied false information that FutureSelect Portfolio Management Inc. relied on to invest with the feeder fund.
FutureSelect, invested approximately $200 million in a feeder fund that sent its money to Madoff, whose 2008 arrest revealed a Ponzi scheme in which investors lost more than $17 billion. In 2010, FutureSelect sued Ernst & Young, accusing it of negligence and seeking to recover its losses.
Jeffrey Newman represents whistleblowers