It should come as no shock to anyone that lots of fingers are being pointed related to Wall Street’s meltdown, and specifically related to the banking industry. And auditors are likely to find themselves the targets of lawsuits. Auditor malpractice is often hard to prove, but in this case, I think there will be several victories against the auditors.
American International Group Inc (AIG) has finalized a settlement of $1.6 billion for allegations of accounting fraud. The settlement will be split almost equally between the Securitites and Exchange Commission (SEC) and the State of New York.
Civil fraud charges were brought against AIG by New York Attorney General Eliot Spitzer and the New York State Insurance Department. The SEC hadn’t yet filed charges, but is expect to file and settle all charges soon.