Eide Bailly Sheds Claims Over Role in Petters Ponzi

Accounting firm Eide Bailly LLP can’t be held liable over its audit of a special purpose vehicle (SPV) used to funnel money to convicted fraudster Thomas Petters’s multi-billion dollar Ponzi scheme, the U.S. District Court for the Northern District of Illinois held April 5 (Peterson v. Eide Bailly LLP, 2016 BL 108081, N.D. Ill., 10 C 8038, 4/5/16).

The plaintiff, bankruptcy trustee to a group of funds that used the SPV to loan money to the scheme, is barred by the doctrine of in pari delicto—unclean hands—from holding the audit firm liable for the funds’ losses, Judge ...