The linked article by Barrons and Propublica.org details the allegations facing two of the largest second tier firms, McGladrey & Pullen (No. 5) and BDO Seidman (No. 7). BDO Seidman already had a $522 million judgment levied against it for its audit of ES Bankest LLC; a Florida factoring firm that was looted by management. Now the firm is facing litigation arising from its audit of funds managed by J. Ezra Merkin who invested at least $3 billion of client money with Bernie Madoff. McGladrey audited another Ponzi scheme managed by Thomas Petters and faces further litigation arising from its audit of the failed Sentinal Fund.
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