Jonathan S. Ziss, a partner in Goldberg Segalla’s Professional Liability Practice Group, commented for a Dow Jones News Service article on the potential implications for financial industry professionals of the Federal Deposit Insurance Corporation’s efforts to recover $1 billion from a pair of accounting firms that failed to catch massive fraud that brought down Colonial Bank.
“I think it’s quite significant, or potentially significant,” Jonathan said. “It’s kind of a paradigm case.”
The article notes: “Mr. Ziss, who isn’t involved in the FDIC’s case, said the two accounting firms will try to argue that Colonial as a company was corrupt because of the conduct of the bank employees who perpetrated the fraud, and thus that the quality of PwC’s and Crowe’s audit work at Colonial is beside the point.”