Bloomington accounting firm faces double whammy over Petters, Madoff. Investors are suing McGladrey & Pullen of Bloomington, blaming it for their losses.
By DAVID PHELPS, Star Tribune
What are the odds?
The Bloomington accounting firm of McGladrey & Pullen has now been sued in relation to both of the top two alleged Ponzi schemes in U.S. history: the $50 billion securities fraud case against Wall Street broker Bernard L. Madoff and the $3.5 billion investment fraud scheme allegedly run by Wayzata businessman Tom Petters.
An investment fund that placed $280 million with Madoff filed suit last week in a state court in Bridgeport, Conn., saying its auditors -- Goldstein Golub Kessler, in 2006, and McGladrey & Pullen LLP, in 2007 -- failed to detect the fraud.
In October, the Ellerbrock Family Trust filed a similar suit in a Minnesota federal court saying that McGladrey & Pullen failed to conduct thorough audits or take other actions that would have uncovered alleged fraud by the Petters companies....more...
StarTribune: Madoff and Petters Losers Suing their Auditors McGladrey & Pullen of Bloomington Minnesota
Naturally, you want to recover your the money you lost in the Madoff and other ponzi scandals. So you sue everyone involved. Conventional thinking tells us that the auditors eventually will have to pony up some dough.