In Bawag Probe, Prosecutors Eye KPMG Austria

Law360, New York (September 21, 2006, 12:00 AM EDT) -- As Austrian prosecutors delve deeper into Austrian lender Bawag PSK Group’s role in the collapse of Refco Inc., employees of the Vienna bank’s auditor, KPMG Alpen-Treuhand GmbH, have now come under scrutiny as well.

Bawag, Austria’s largest bank, played a key role in the alleged debt scheme that led to Refco’s demise last year. Refco slipped into Chapter 11 protection on October 17 in the wake of an accounting scandal revealing that former chief executive Phillip Bennett concealed millions of dollars in debt.

According to prosecutors,...
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