Deloittes settles out of court
Deloitte & Touche, formerly Touche Ross, and Cantrade Private Bank Switerland, a subsidiary of UBS, have agreed to pay investors $38.5m (£26.30m) in an out of court settlement involving Jersey's biggest fraud.
The investors – the majority of whom were Americans – fell victim to the Channel Islands’ most reported fraud involving a crooked independent currency trader and false audits of the trader’s performance.
The accountancy firm and subsidiary of UBS agreed to settle following seven years of litigation in which the plaintiffs accused Touche Ross, represented by partner Alfred Williams, of providing misleading information on the returns of the foreign exchange trader, Robert Young.
A spokesman for Deloitte & Touche in London said the firm had paid a ‘minor proportion’ of the settlement fee.
Young and Williams were convicted of fraud and misrepresentation and imprisoned for four years and 18 months respectively in 1998.