|Accountants of Perot Family Office Fund Sued By Investors in Fraud Claim|
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Investors in a hedge fund managed by former presidential candidate Ross Perot’s family office have sued its accountants, accusing them of helping Parkcentral Capital Management defraud them, according to media reports.
The lawsuit alleges that Ernst & Young “facilitated, assisted in and participated in” the fund’s fraud. A lawyer for the investors said that Parkcentral’s “audited financial statements never once warned Parkcentral’s investors of their impending doom.”
This publication was unable to contact the parties in the matter at the time of going to press.
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, reports said. 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.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on Sept.2, 2010