Schein v. Ernst & Young
3-week accounting fraud jury trial in Broward County Circuit Court's complex litigation division.
Plaintiffs Alan Schein and Result Technologies, Inc. brought the claim, alleging they were damaged by Ernst & Young's failure to conduct proper audits of Illinois-based Superior Bank F.S.B. The FDIC took control of Superior Bank in 2001 after declaring it insolvent.
The case calls into question consulting fees given by the banks to Ernst & Young.
The jury found that Ernst & Young was negligent and awarded damages of $16M ($6M to Result Technologies and $10M to Alan Schein).
From BNET News: "Feb. 8--Ernst & Young LLP, the auditing firm accused of inadequately overseeing the books of now-failed Superior Bank FSB, also received consulting fees from the bank which totaled at least twice as much as the fees it received for its accounting services, a federal regulator said.
"It was a direct conflict," said Gaston Gianni, inspector general for the Federal Deposit insurance Corp., in testimony to the Senate banking committee Thursday. "
Plaintiffs Alan Schein and Result Technologies, Inc. brought the claim, alleging they were damaged by Ernst & Young's failure to conduct proper audits of Illinois-based Superior Bank F.S.B. The FDIC took control of Superior Bank in 2001 after declaring it insolvent.
The case calls into question consulting fees given by the banks to Ernst & Young.
The jury found that Ernst & Young was negligent and awarded damages of $16M ($6M to Result Technologies and $10M to Alan Schein).
From BNET News: "Feb. 8--Ernst & Young LLP, the auditing firm accused of inadequately overseeing the books of now-failed Superior Bank FSB, also received consulting fees from the bank which totaled at least twice as much as the fees it received for its accounting services, a federal regulator said.
"It was a direct conflict," said Gaston Gianni, inspector general for the Federal Deposit insurance Corp., in testimony to the Senate banking committee Thursday. "
Trial - 06/29/09 to 07/22/09
03-266
Concluded - Verdict
Judge:
Streitfeld, JeffreyParties and Attorneys:
Plaintiff- Schein, Alan Represented By:
Witnesses:
Expert- Epstein, Dr. Barry
- Bracken, Mr. William
- Beach, Mr. Murray
- McClave, Dr. James
- Grice, Mr. Charles
- Hitscherich, Prof. Donna
- James, Prof. Christopher
- Lucas, Mr. Timothy
- Schein, Mr. Alan
- Stephenson, Mr. Nelson
- Sever, Mr. Mark
- Kuhn, Mr. Gerald
- Kelly, Mr. Thomas
- Vogelsinger, Mr. Thomas
- Amato, Mr. Vincent
- Levowitz, Mr. Frank
- Halleran, Mr. Neal
- Grady, Mr. James
- Rapp, Mr. Robert
- Kosiek, Mr. Timothy
- Laskawy, Mr. Philip
- Demarest, Mr. Steven
- Mann, Mr. Steven
- Herrindon, Mr. John
- Montgomery, Mr. Edward Jr.
- Joseph, Mr. Michael
- Campo, Mr. Steve
- Karabel, Mr. Sidney
- Mott, Ms. Amy
- Maroutsos, Mr. Peter