Academic journal article Journal of Accountancy

Fraud Charges against Pannell Kerr Forster Dismissed

Academic journal article Journal of Accountancy

Fraud Charges against Pannell Kerr Forster Dismissed

Article excerpt

Claims against Pannell Kerr Forster (PKF) by a group of investors who purchased limited partnership interests were dismissed by the U.S. District Court for the Northern District of Illinois.

PFK had generated projections included in VMS Limited Partnership Securities' offering memorandums. The investors cliamed PKF misrepresented the nature of the investments. These were some of the alleged misrepresentations:

1. The cost of the various properties purchased by the partnership was to be either less than appraised value or its replacement cost.

2. The partnership interests were reasonably expected to be profitable, were secure investments and would yield substantial tax benefits.

3. Investors were to enjoy an aftertax gain even if the properties were sold for only $1 above exiting indebtedness.

The investors, alleging each of these representations had proven to be false, charged the defendants with securities law violations, fraud and negligence.

After dismissing the investors' federal securities law claims on statute-of-limitations grounds, the court discussed state law claims against PKF. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.