Question: In 2006 twenty seven people and entities became limited partners
In 2006, twenty- seven people and entities became limited partners in two hedge funds that had invested with Bernard Madoff and his investment firm. The partners’ investment adviser gave them various investments information, including a memorandum indicating that an independent certified public accountant, KPMG, LLP, had audited the hedge funds’ annual reports. Since 2004, KPMG had also prepared annual reports addressed to the funds’ “Partners.” Each report stated that KPMG had investigated the funds’ financial statements, had followed generally accepted auditing principles, and had concluded that the statements fairly summarized the funds’ financial conditions. Moreover, KPMG used the information from its audits to pre-pare individual tax statements for each fund partner. In 2008, Madoff was charged with securities fraud for running a massive Ponzi scheme. In a 2009 report, the Securities and Exchange Commission identified numerous “red flags” that should have been discovered by investment advisers and auditors. Unfortunately, the auditors did not find them, and the hedge funds’ partners lost millions of dollars. Is KPMG potentially liable to the funds’ partners under the Restatement (Third) of Torts? Why or why not?
Answer to relevant Questions* * * * Kelley Mala is a citizen of the United States Virgin Islands. * * * He went for a cruise in his powerboat near St. Thomas, Virgin Islands. When his boat ran low on gas, he entered Crown Bay Marina to refuel. Mala ...1. To what extent must professionals reveal to their clients where confidential data are stored? 2. To what extent should professionals create their own backup data storage systems? To achieve both cost savings and better ...On learning that Sébastien planned to travel abroad, Roslyn asked him to deliver $ 25,000 in cash to her family in Mexico. During a customs inspection at the border, Sébastien told the customs inspector that he carried ...The Wallen family owned a cabin on Lummi Island in the state of Washington. A driveway ran from the cabin across their property to South Nugent Road. Floyd Massey bought the adjacent lot and built a cabin on it in 1980. To ...The Legal Environment DimensionBased on what you know about the facts, did Melton have testamentary intent when he wrote his letter? Why or why not?The Ethical DimensionMost states have strict requirements for the execution ...
Post your question