BusinessBusiness RecoveryPwC dragged into Refco controversy

PwC dragged into Refco controversy

Big Four firm's US arm advised futures brokerage on financial reporting ahead of collapse

PwC’s US arm has been dragged into the controversy surrounding collapsed
futures brokerage Refco after it emerged that the Big Four firm advised it about
financial reporting when it changed from a private to public company.

According to the Financial Times PwC advised Refco on accounting
issues and preparing more detailed financial statements.

Prosecutors and regulators have not spoken to PwC, but Refco’s other
advisers, including auditors Grant Thornton, are facing shareholder lawsuits.

The FT reports that PwC was appointed in April last year to advise
Refco on $600m (£343.2m) debt offering as part of a deal that saw private equity
group Thomas H Lee pay $450m for a majority stake in Refco.

PwC is believed to have had one partner and three staff working for Refco.
They advised the group on financial reporting and SEC filing requirements for
public companies.

Refco collapsed last month when CEO Phillip Bennett allegedly used a hedge
fund to conceal a $430m debt from investors.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor