Author Cornwell Wins $50.9 Million Lawsuit against Financial Manager

From AccountingWEB
By Terri Eyden
February 22, 2013

Best-selling mystery writer Patricia Cornwell won a $50.9 million judgment February 18 after a federal court jury in Boston unanimously found that her former accounting and business management firm, and a former principal in that firm, acted negligently and in breach of fiduciary duties in managing the finances of her and her partner, Dr. Staci Gruber…

Boston University School of Law Professor Tamar Frankel, a financial fraud expert, told AccountingWEB that in financial management arrangements such as this one, financial advisors should have “no conflict of interest when giving advice. Focus on the clients.”

Frankel said that if an advisor is hired to manage a wide range of personal and business financial affairs for a client, then that advisor has far greater responsibilities and duties than say, preparing tax returns or managing a portfolio. “The equation is that the higher the power you have, the greater your responsibilities are.”

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