In the article “Did The Accountants Kill MF Global? Jury to Decide in $3 Billion PwC Suit,” published by
Forbes, written by Dan Fisher, Attorney Jacob Frenkel, who Chairs the firm's Government Investigations and Securities Enforcement practice, comments on the central question in the case.
MF Global, the bankrupt commodities trading firm, blames PwC for its collapse and are suing the firm for negligence. The central question in this case is whether MF Global failed because of a flawed investment strategy by former chief Jon Corzine of investing billions of dollars in European sovereign debt, or PwC’s opinion that MF Global could keep those bonds off its books.
“This case aggressively and dangerously seeks to redefine the role of auditors from reviewers – auditors – of financial statements and presentation to a guarantor of business judgment,” said Mr. Frenkel, a former Securities and Exchange Commission enforcement lawyer and partner in charge of the government investigations practice.
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