- Plaintiff
- Schein, Alan
3-week accounting fraud jury trial in Broward County Circuit Court's complex litigation division.
Plaintiffs Alan Schein and Result Technologies, Inc. brought the claim, alleging they were damaged by Ernst & Young's failure to conduct proper audits of Illinois-based Superior Bank F.S.B. The FDIC took control of Superior Bank in 2001 after declaring it insolvent.
The case calls into question consulting fees given by the banks to Ernst & Young.
The jury found that Ernst & Young was negligent and awarded damages of $16M ($6M to Result Technologies and $10M to Alan Schein).
From BNET News: "Feb. 8--Ernst & Young LLP, the auditing firm accused of inadequately overseeing the books of now-failed Superior Bank FSB, also received consulting fees from the bank which totaled at least twice as much as the fees it received for its accounting services, a federal regulator said.
"It was a direct conflict," said Gaston Gianni, inspector general for the Federal Deposit insurance Corp., in testimony to the Senate banking committee Thursday. "
Fault For Result Technologies: 70%-Ernst & Young 30%- Results Technologies
Fault for Schein: 60%- Ernst & Young 40%- Schein
Damages sustained by Results Technology, caused by Ernst & Young: 6,000,000
Damages sustained by Schein, caused by Ernst & Young: 10,000,000
Total: 16,000,000
Description | Attorney | Witness | Presence | |||
---|---|---|---|---|---|---|
00:00:00 | General Case Activities | |||||
00:00:50 | General Case Activities | |||||
00:16:30 | Opening Statement | Scarola, John "Jack" | ||||
02:02:03 | End of Session |
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