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Recent Cases: Accounting firm that recommended investment to its clients held liable for investment losses. |
In 1998, a Fulton County accounting firm began recommending that its clients invest in a Florida company. Specifically, the accounting firm recommended that its clients make loans to the Florida company in exchange for promissory notes with a guaranteed rate of return. The accounting firm also advised its clients that it was the accountant for the Florida company, that it routinely reviewed the company's financial statements and tax returns, and that this was a unique and lucrative investment opportunity. However, several years later, the clients learned that the Florida company was actually insolvent and had just been running a Ponzi scheme -- using one investor's principal to pay another investor's interest payments. Through litigation in Fulton County, Georgia and the United States Bankruptcy Court in Miami, Florida, the Firm recovered over $1.5 million for these investors. The case was handled by Ed Dovin and Allison Ficken. |
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