Wednesday, July 11, 2007

They didn't know but probably should have known

An independent examiner has issued his report on the Refco scandal. His conclusion:
  • Refco's lawyers, Mayer Brown, should have known that the documents they were preparing were false.
  • Refco's auditors did not appear to follow GAAP.
As you would expect, both the lawyers and auditors claim they are innocent of any wrongdoing.

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