KPMG Can't Duck Ponzi Fraud Claims, NY Appeals Court Says

Law360 (December 2, 2020, 11:21 PM EST) -- A New York state appeals court ruled that a lower court wrongly tossed insurers' claims that accounting firm KPMG assisted in an alleged Ponzi scheme operated by defunct hedge fund Platinum Partners, finding that KPMG clearly knew of the alleged fraud when issuing a capitalization valuation that convinced the insurers to invest.

A four-judge panel of New York supreme court appellate division said Tuesday that a county judge erred in dismissing Bankers Conseco Life Insurance Co. and Washington National Insurance Co.'s claims that KPMG aided and abetted fraud.

The insurers sufficiently alleged KPMG knew of Platinum Partners' alleged scheme and offered...

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