Madoff's accountant bites the dust

[Willie99]

Poor dude, his family had millions invested with Madoff too.

So he loses money, loses probably his biggest client and gets arrested to boot. That can't be good.

I wonder how much malpractice insurance he carries? If he's auditing a firm like Madoff's, it should be very substantial.

 

[billbeater]

any real country with balls would make and example of these asses and hang them in the streets!

 

[punter]

Willie how is it possible for this guy to be their accountant and not catch that Madoff had made no investments?

 

[Willie99]

He simply did an horrific job auditing. I'm assuming a firm life Madoff's was required to be audited. If not, everything changes.

It's easy enough for someone to generate fraudulent documents to present to an accountant. But an audit would require third party verification. The auditor would be required to communicate directly with banks and other financial institutions and obtain copies of certain documents directly from such third party. Obviously, no such documentation could have been obtained.

Of course, this fraud could also have many other people involved. It's remotely possible, but I doubt it, that the auditing firm did their job but were victims of widespread collusion.

 

[mamatried]

If he actually lost millions and can prove it, I think he has a pretty case that he was merely incompetent and not guilty of fraud.

 

[Willie99]

If he actually lost millions and can prove it, I think he has a pretty case that he was merely incompetent and not guilty of fraud.

might keep him out of jail, will still lose malpractice litigation