A management consulting firm McKinsey & Company is under federal criminal investigation into the way it advises bankrupt companies, The New York Times reported on Friday.
Prosecutors are investigating whether McKinsey puts his profits above the best interests of clients and whether he uses his influence over companies in violation of Chapter 11 bankruptcy rules, according to a report cited by unnamed Justice Department officials
Gary Pincus , the North American company chairman, told the Times that McKinsey received a request from the U.S. Attorney's Office for the Southern District of New York last year, responded and has since received no further requests. [1
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MCKINSEY, SAP, KPMG FACE CRIMINAL COMPLAINTS FROM JUGAFRIK9 1926945
in 66 countries. Consults with private companies, public agencies and other institutions.
This is not the first time McKinsey has encountered verification in the last few years. It was one of several companies accused by South African authorities of making reckless, negligent or fraudulent business decisions. McKinsey also appeared in a case against Ukrainian oligarchs and opioid manufacturers, the Times reported.
In February, McKinsey reached an agreement with the United States Department of Justice's trusteeship program on Chapter 11. The company agreed to pay $ 15 million to do what officials said were inadequate disclosures related to with these bankruptcies.
But the program may not be done with McKinsey. According to the report, the office also looks into other bankruptcy cases handled by McKinsey.
Under the terms of the agreement, the US Trustee Program agreed not to take any further action against McKinsey based on previous disclosures unless it disclosed the disclosures. contained "misconceptions or omissions" that would have prevented the company from taking action.
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