Washington Jury Finds Auditors Liable for $10M in Madoff losses

A Seattle, Wash. jury has found 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 last week’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.