Auditors found liable for $10M in Madoff losses in Washington

Published 5:10 pm Friday, November 13, 2015

SEATTLE — A Seattle jury has found the firm of Ernst &Young liable for half of more than $20 million lost by a Washington investment company in the wake of Bernie Madoff’s multi-decade investment scam.

FutureSelect Portfolio Management attorney Steven Thomas said Friday’s verdict pins responsibility on Ernst &Young for damages during the four years it audited funds managed by Tremont Partners. FutureSelect, of Redmond, and some related firms, lost a total of about $129 million in Tremont funds that sent money to Madoff.

FutureSelect alleged that Ernst &Young would have uncovered the Madoff fraud if it had taken basic steps to verify his assets.

Ernst &Young spokeswoman Amy Call Well said the firm believes it was not responsible for any of the investors’ losses. Officials at the firm are reviewing whether to appeal the verdict.