September 17, 2021

PwC Is Raking It In on Old Fraud

As the multibillion-dollar scheme led by Tom Petters approaches its sixth anniversary, the meter is still running for the lawyers and accountants sorting through the corporate empire created by the former Wayzata businessman, and the array of creditors and investors who did business with him.

More than $83 million has been paid to the lawyers and accountants working on the Petters bankruptcy after a federal bankruptcy judge last week approved $3.5 million for another stretch of legal work.

So far, trustee Doug Kelley and a team of lawyers and accountants have recovered nearly $400 million in various legal proceedings, including funds from the sale of Sun Country Airlines and Polaroid, both of which were owned by Petters.

The recovery ratio to date is $5 recovered for every $1 spent on professional fees. By comparison, in the bankruptcy of convicted New York Ponzi schemer Bernard Madoff, the recovery ratio is approximately 10 to 1 ­— legal fees totaling $927 million on recoveries reaching $9.8 billion. [Minneapolis Star Tribune]

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

Compensation Watch ’21: How ’Bout Them Raises At PwC? (NEW UPDATE)

(Updated original post on July 8 with a comparison of average raise percentages per promotion from 2020 and 2016.) PwCers expected really good raises this year. They trust that management would make that happen, given that PwC U.S. had record-setting revenue of $18 billion last year during a global pandemic. Last year PwCers had to […]