Guernsey: PwC fails to dismiss £25m negligence claim over Guernsey ‘Ponzi scheme’

A £25m lawsuit against PwC for alleged negligence in its audits of a Guernsey “Ponzi scheme” will go ahead after the Big Four accountant failed to have the claim thrown out of court.

A judge in the Guernsey Royal Court has dismissed an attempt by PwC to quash the legal proceedings. PwC is accused of failing to discover a fraud at the Providence Investment Fund, which collapsed owing its investors millions of pounds.

Administrators to the fund who work at Deloitte, another large accounting firm, claim PwC breached its duties as an auditor by signing off on its accounts despite the fraud in which almost all shareholders’ money was stolen. PwC on Monday said the claim was “misconceived” and that it would “continue to robustly defend” it.

The full original article can be found at ft.com

(Photo: Mauritz Antin/EPA)

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