Ponzi Auditor Exonerated

In re Kelley (Bankr. D. Minn. 2015; File No. 12-0X008) – After the collapse of a massive Ponzi scheme, the bankruptcy trustee said an auditor of one of the special purpose entities used to conduct the fraud had negligently failed to detect the fraud, causing damages of $116,000,000. After a two-week trial, the arbitration panel rejected the claim and awarded a total defense victory to the CPA firm.