{"id":17438,"date":"2010-08-27T08:45:19","date_gmt":"2010-08-27T12:45:19","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=17438"},"modified":"2010-08-27T08:54:01","modified_gmt":"2010-08-27T12:54:01","slug":"hedge-fund-investors-to-sue-ernst-young","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/08\/2010\/hedge-fund-investors-to-sue-ernst-young.html","title":{"rendered":"Hedge Fund Investors to Sue Ernst &#038; Young"},"content":{"rendered":"<p>New York (HedgeCo.net) &#8211; A lawsuit has been filed against hedge fund auditors Ernst &amp; Young after a group of investors lost more than $17 million following the collapse of a Plano, Texas-based hedge fund that promised low-risk investments.<\/p>\n<p>The lawsuit focuses on two funds sold by Plano&#8217;s Parkcentral Global and was filed on behalf of Houston financial consultant Gus H. Comiskey and four Tucson, Ariz.-based entities, including the Thomas R. Brown Family Private Foundation. The now-defunct Parkcentral Global was operated by affiliates of billionaire and former presidential candidate H. Ross Perot before closing its doors after losing a total of more than $2.6 billion.<\/p>\n<p>&#8220;Our clients were told that an investment in Parkcentral was designed to preserve capital. Instead, they lost every penny in record time. E&amp;Y was supposed to be auditing Parkcentral, but the audited financial statements never once warned Parkcentral&#8217;s investors of their impending doom,&#8221; says attorney Demetrios Anaipakos, who will try the case with Amir H. Alavi.<\/p>\n<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/08\/Fraud-in-Dictionary-11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-17444\" title=\"Definition of fraud\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/08\/Fraud-in-Dictionary-11-300x202.jpg\" alt=\"\" width=\"300\" height=\"202\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2010\/08\/Fraud-in-Dictionary-11-300x202.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2010\/08\/Fraud-in-Dictionary-11.jpg 435w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>The lawsuit includes claims that New York-based Ernst &amp; Young falsely represented that the company fairly audited Parkcentral Global and the auditor failed in its &#8220;watchdog&#8221; role to warn relying investors of the risk of fraud and noncompliance by management. The suit accuses Ernst &amp; Young of fraud, negligent misrepresentation, securities fraud and conspiracy.<\/p>\n<p>This month, Brown Investment Management, L.P., one of the plaintiffs in this suit against Ernst &amp; Young, won a Delaware Supreme Court ruling that requires Parkcentral Global to disclose its former investors. Those investors could be added to the new Houston lawsuit.<\/p>\n<p>The investments of the Brown foundation, Brown Investment Management and the two other family-related ventures totaled $16 million and were lost within 90 days despite a &#8220;worst case loss&#8221; estimate of 5 percent. Mr. Comiskey, like his fellow investors, lost 100 percent of his investment when Parkcentral Global went under.<\/p>\n<p>Editing by Alex Akesson<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) &#8211; A lawsuit has been filed against hedge fund auditors Ernst &amp; Young after a group of investors lost more than $17 million following the collapse of a Plano, Texas-based hedge fund that promised low-risk investments. The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,12,3],"tags":[],"class_list":["post-17438","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedge-fund-regulation","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/17438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=17438"}],"version-history":[{"count":4,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/17438\/revisions"}],"predecessor-version":[{"id":17440,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/17438\/revisions\/17440"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=17438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=17438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=17438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}