{"id":5715,"date":"2018-12-21T18:59:04","date_gmt":"2018-12-21T18:59:04","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/pwc-sued-14m-for-negligent-providence-audits\/"},"modified":"2018-12-21T18:59:04","modified_gmt":"2018-12-21T18:59:04","slug":"pwc-sued-14m-for-negligent-providence-audits","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/pwc-sued-14m-for-negligent-providence-audits\/","title":{"rendered":"PwC sued \u00a314m for ‘negligent’ Providence audits"},"content":{"rendered":"\n
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\"Matt<\/span>

Image caption<\/span>
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\n Lawyer Mathew Newman, for Providence’s administrators, said investors could get some money back should the action succeed
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Investors who lost \u00a337m in a Guernsey “Ponzi scheme” could recoup some of their losses after a legal challenge was launched against a “big four” accountancy firm.<\/p>\n

Administrators for Providence Investment Fund are suing PwC for \u00a314m over “negligence, breach of duty and breach of contract as its auditors”.<\/p>\n

The fund – which promised investors returns up to 14% – collapsed in 2016.<\/p>\n

PwC said it would “vigorously defend” the action at a Guernsey court. <\/p>\n

The accountancy giant audited a company used by Providence to gather investors’ money, papers filed at Guernsey’s Ordinary Court show.<\/p>\n

Lawyers allege PwC acted with negligence and in breach of its duties, leading to the fund accumulating an additional \u00a314,012,730 of investors’ money.<\/p>\n

“If we do recover \u00a314m then some of that will find its way back to investors – absolutely,” said lawyer Mathew Newman, representing Providence’s administrators. <\/p>\n

More Channel Islands news.<\/a><\/p>\n

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\n The Guernsey-based Providence fund was run from this office in St Peter Port
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Audit reports by PwC gave a “clean” assessment of Providence Investment Funds PCC Ltd’s (PIF) financial statements between October 2012 and December 2013, and for the year end December 2014, the papers filed by Mr Newman state.<\/p>\n

PIF was a Guernsey-regulated company that claimed to invest in Brazilian firms.<\/p>\n

But while being audited by PwC, it was used by company chief executive Antonio Buzaneli and others as a “fraudulent Ponzi scheme”, court papers go on to claim. <\/p>\n

PIF shareholder Buzaneli pleaded guilty to conspiracy to commit mail fraud<\/a> as part of a plea agreement in the US in April 2018. <\/p>\n

At one stage, 97% of investors’ money did not make it to Brazil, with the majority going instead to Providence Global Limited, a Guernsey company, according to the papers. <\/p>\n

In response to the administrators’ claim for \u00a314m, PwC said: “We are disappointed that this action has been brought. <\/p>\n

“We believe the claim is misconceived and will vigorously defend our position.”<\/p>\n<\/p><\/div>\n


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Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image caption Lawyer Mathew Newman, for Providence’s administrators, said investors could get some money back should the action succeed Investors who lost \u00a337m in a Guernsey “Ponzi scheme” could recoup some of their losses after a legal challenge was launched against a “big four” accountancy firm. Administrators for Providence Investment Fund are suing PwC for … <\/p>\n","protected":false},"author":0,"featured_media":5716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5715"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/5716"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}