DeWitt & Shrader PC, an Indianapolis-based accounting firm that worked for convicted Ponzi schemer Keenan Hauke, has agreed to settle a state lawsuit, Indiana Secretary of State Connie Lawson announced Tuesday.
Somerset CPAs PC will pay $500,000 to settle litigation brought by the bankruptcy trustee of Fair Finance Co., the Ohio-based firm that convicted financier Tim Durham used to conduct a major Ponzi scheme.
Auditors reviewing $526 million in tax errors made by Indiana's tax collection agency said Monday they will investigate whether state employees are knowledgeable enough to track tax collections and whether the state has adequate internal controls to guard against future errors.
Four principals and about a dozen other staff accountants and support staff at Meridian will join Somerset in August. Somerset is Indianapolis' seventh-largest accounting firm, based on the number of local full-time employees.
The lawsuit accuses convicted money manager Keenan Hauke's former accounting firm of negligence for failing to monitor Hauke's bank accounts, enabling him to use investor funds for his personal use. Hauke was sentenced in March to 10 years in prison.
Indiana's state budget leaders picked international accounting firm Deloitte on Monday to determine the scope of an external audit looking at how the state lost track of more than $500 million in tax revenues.