Ernst & Young Perot Lawsuit

Ernst & Young Perot Lawsuit

Parkcentral Investors Suing Ernst & Young Over Collapse

Coincidentally, this is one of two politics-related articles in the newsletter. Investors in a hedge fund managed by former presidential candidate H. Ross Perot's family office have sued Parkcentral Capital Management's accountants for allegedly assisting the fund's fraud.

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

Related to: Ernst & Young Perot Lawsuit

Tags: Ernst & Young Perot Lawsuit, Ernst & Young Lawsuit, H Ross Perot, Family Office, Ross Perot family office, Parkcentral capital management collapse

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