Accounting Firm Ordered to Pay $180,000 in Sanctions For Withholding Documents Relating to Seattle's 'Mini-Madoff'
A federal judge ruled that an accounting firm should pay $180,000 in legal fees resulting from multiple failures to respond to a subpoena issued by the trustee overseeing a massive Seattle Ponzi scheme whose mastermind became known as Seattle's 'Mini-Madoff'. Moss Adams, the nation's 12th-largest accounting firm, had been asked to produce documents relating to its dealings with Darren Berg, who pled guilty in July 2011 to running a $150 million Ponzi scheme. Moss Adams, which counted Berg as a client for ten years, had been found in contempt in April for failing to timely produce thousands of documents.
"Moss Adams’ failure to fully comply with the Subpoena hampered the Trustee both with regard to his duties to marshal the estates’ assets and his efforts to evaluate the estates’ claims against Moss Adams."