School Blamed For Losses In Alleged $7M Bond Fraud

Law360, New York (March 20, 2009, 12:00 AM EDT) -- The underwriters and auditing firm involved in an allegedly fraudulent $7 million bond issue for a charter school in Michigan have filed third-party complaints claiming Crescent Academy alone is liable for the millions the mutual funds lost in the transaction.

Herbert J. Sims & Co. Inc. and Municipal Capital Markets Group Inc., the underwriters for the Crescent Academy project, filed their third-party complaint Thursday in the U.S. District Court for the Eastern District of Michigan, saying that Crescent Academy and its consultant Helicon Associates Inc. are...
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