Washington investors seek to pin Madoff losses on auditors

SEATTLE (AP) — Nearly seven years after Bernie Madoff’s investment empire was revealed to be a $17.5 billion fraud, the battle by investors to recover their losses ramps up in a case that goes to trial this week in Seattle.

A Washington state investment company is seeking to pin about $100 million of its losses from Madoff’s crimes on auditor Ernst & Young.

FutureSelect Portfolio Management of Redmond lost a total of about $129 million in the pyramid scheme. In King County Superior Court papers, the company alleges that Ernst & Young would have uncovered the scheme if it had taken even the most basic steps to verify Madoff’s assets — something the auditing firm denies it had any obligation to do.

Ernst & Young said it had a very limited role with regard to FutureSelect’s investments.

Jury selection in the case starts Monday.

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