Lawyer Suing Moss Adams Seems to Have Hurt Feelings After Opposing Counsel Called His Lawsuit “Flimsy”

Anyone remember Frederick Darren Berg? He's a guy who had a thing – nay, a passion – for charter buses. It just so happens that he also was running Washington's largest ever Ponzi scheme to finance his passion. Moss Adams (who Berg says is not at fault) was the auditor for FDB's Meridian funds – the vehicles for the scheme – and they're currently tied up in court with the Meridian investors' court-appointed trustee. Last month, MA's lawyers made it known that they didn't think too much of the plaintiff's case, calling it "flimsy." The attorney for the trustee, Michael Avenatti, found that curious because he claimed that MA was ready to settle for $25 million. MA called bullshit, saying no offer was ever made and now they'd prefer that this Avenatti character take a hike for making this up:

Moss Adams’ lawyers — Kelly Corr and Steven Fogg of the Seattle firm Corr Cronin Michelson Baumgardner & Preece LLP — say Avenatti made false statements and violated a confidentiality agreement by referring to the mediation negotiations. 

Well, Avenatti wasn't about to let this go any further without explaining that A) he really didn't do anything wrong and B) he didn't have any choice but to spill the $25 million settlement story because opposing counsel was so mean:

“I kept all aspects of the mediation confidential and only disclosed Defendant’s $25 million settlement offer in direct response to Defendant’s false allegation that his lawsuit has no merit, is ‘frivolous,’ and “flimsy,” Avenatti said in a court filing.

I'm all for lawyers getting bent out of shape but it's really frightening to imagine what would happen if they all reacted this way every time someone called their lawsuits flimsy. 

Moss Adams fires back at attorney behind Berg audit suit [PSBJ]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Accountants Behaving Badly: Fraud Isn’t All It’s Cracked Up to Be

I never thought I’d ever write the words “egg accountant busted in embezzlement scheme” but here we are. The egg accountant, Jonathan Weston, was indicted by a federal grand jury in Pittsburgh June 3 on charges of fraud conspiracy, money laundering conspiracy, and tax fraud. According to the U.S. Attorney Office for the Western District of […]

Oh Look, a Pissed-Off Stockholder Is Suing Mattel Directors and PwC

While a potential class complaint filed against Mattel and its auditor PwC by a group of Mattel investors currently sits in the U.S. District Court for the Central District of California, a separate lawsuit against directors of the global toy giant’s board and PwC was filed on May 21 in Delaware Chancery Court by a […]