Hedge Funds

Lancer investor sues PwC and Ernst & Young

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International accounting agencies Pricewater-houseCoopers and Ernst & Young have been slapped with a lawsuit for alleged securities fraud over their role in the collapse of Lancer Partners, Michael Lauer's former $1 billion hedge fund group.

John Bruhl, an investor who lost money in a Lancer-managed hedge fund strategy, filed a complaint in New York federal court claiming the two accounting firms should have discovered that the funds were worth much less than the $1 billion Lancer claimed.

PricewaterhouseCoopers and Ernst & Young "were the critical factor in the massive fraud perpetrated by the Lancer entities and Lauer" the complaint