Two of the Big Four accountancy firms are set to ramp up their head-to-head battle, as PwC seeks to absolve itself of any wrongdoing in its role as auditor of the collapsed Providence Investment Fund.
Administrators at Deloitte are suing PwC for negligence, breach of duty and breach of contract.
But newspaper The Financial Times reported on Monday that PwC has filed an application to dismiss the claims against it in the Guernsey courts.
Providence was put in administration in 2016, with Deloitte launching its legal challenge in December 2018.
The initial sum it was seeking was reported to be £14m but the latest FT article put it at £25m ($30.7m, €28.1m).
PwC said it would “vigorously defend” itself against the accusations.
International Adviser has been in contact with both firms, but no response was received ahead of publication.
Fallout from the fund
A subsidiary of US firm Providence Group of Companies, Guernsey-based Providence Global promoted two funds that offered investors returns of up to 28% from a Brazilian factoring operation, where company debt was purchased at reduced prices.
The chief executive of Providence Companies Group admitted to orchestrating a $150m scam that duped mostly elderly and vulnerable people across the world.
Antonio Buzaneli entered a guilty plea for one count of conspiracy to commit mail fraud to a court in the US on 19 April 2018.
FBI acting special agent in charge Robert Bone said the “vast and sophisticated fraud scheme truly circled the globe, touching venues as near as St Louis Park, Minnesota and as far as Brazil, the United Kingdom and China”.
Providence opened offices and affiliates around the world; including in London, Guernsey, Hong Kong, Taipei, Shanghai, Singapore, Vancouver and Panama.
Lumiere connection
The Providence scandal also brought down Jersey-based IFA firm Lumiere Wealth.
Its chief executive, Chris Byrne, was sentenced to seven years in prison and banned from working in financial services for 12 years for his involvement in the global Ponzi scheme.
The IFA firm was wound up in October 2016.
Byrne was found guilty of 18 counts relating to £3m he funnelled into the Providence fund.
