Ernst & Young Perot Lawsuit
Parkcentral Investors Suing Ernst & Young Over Collapse
The accountants, Ernst & Young, are accused by the investors of helping the fraud because the firm “audited financial statements never once warned Parkcentral’s investors of their impending doom.” Parkcentral was sued already for the collapse of its which was controlled by Perot Family Trust and other Perot-controlled entities.
Parkcentral itself was sued last year over the 2008 collapse of its $2.6 billion Global Hub hedge fund, which plaintiffs allege was controlled by the Perot Family Trust and other Perot-controlled entities. According to one lawsuit, Parkcentral misled investors about the fund’s liquidity, leverage and risk controls, leading to the complete wipe-out of the hedge fund’s value.
JPMorgan Chase has also sued Plano, Texas-based Parkcentral for defaulting on a $125 million margin call.
The plaintiffs in the latest lawsuit lost some $17 million in two Parkcentral hedge funds that collapsed. Source