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Berg Bankruptcy Trustee Sues Accounting Firm Moss Adams

Lawyers representing investors bilked out of an estimated $100 million filed a lawsuit against the Seattle-based accounting firm Dec. 8 in King County Superior Court.

According to the Puget Sound Business Journal, Mercer Island's largest fraud has now drawn his former accountant into legal trouble.

Accounting firm Moss Adams, LLC, was named along with former resident Frederick Darren Berg in a Dec. 8 civil lawsuit filed in King County Superior Court (click here for more background on the case).

According to the Journal, the suit alleges Berg conspired with the firm to deceive investors in an elaborate Ponzi Scheme that came crashing down in 2010 and resulted in his arrest.

Federal prosecutors have declared that Berg, with over $280 million in total assets involved, . Berg and prosecutors on one count of Wire Fraud, one count of Money Laundering and one count of Bankruptcy Fraud in return for an 18-year prison sentence

His sentencing is scheduled Jan. 20, 2012 before U.S. District Judge Richard A. Jones. If Judge Jones rejects the plea deal, both sides can withdraw from the plea agreement and proceed to trial.

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