Synergy Auditor Should Have Caught $1B Fraud, Suit Says

Law360, New York (March 29, 2013, 6:49 PM EDT) -- The largest secured creditor of bankrupt food products company Synergy Brands Inc. sued Holtz Rubenstein Reminick LLP in New York state court Thursday alleging the auditor failed to catch the company’s $1 billion check-kiting scheme, which eventually landed Synergy's CEO in prison for bank fraud.

Plaintiff Lloyd I. Miller and his company Milfam I LP say they relied on Holtz Rubenstein’s audit reports, which showed the company's books were in order, when they loaned at least $3 million to Synergy in 2010. Had those audit reports...
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