Law360, New York (March 21, 2008, 12:00 AM EDT) -- Accounting firm McGladrey & Pullen LLP not only failed to detect the fraud at bankrupt financial services company Sentinel Management Group Inc. but also aided and abetted the scheme, according to a new adversary proceeding filed by the bankruptcy trustee in Sentinel's Chapter 11 case. The suit demands $550 million in damages.
In a complaint filed on March 20, bankruptcy trustee Frederick J. Grede accused M&P of failing to satisfy basic auditing standards and in some cases participating in wrongdoing by Sentinel executives.
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