McKinsey & Company is being prosecuted for the manner in which it advises bankrupt companies The York Times reported on Friday.
The prosecution is investigating whether McKinsey puts its profits before clients' interests and asserts its influence over companies, which violates the Chapter 11 bankruptcy rules
Gary Pinkus, the company's chairman in North America, told the Times McKinsey received a request from the US Attorney for the South District of New York last year, responded, and has not received any more requests since.
] But investigators have questioned people about McKinsey's business in at least two bankruptcies.
GET FOX BUSINES ON THE ROAD BY CLICKING
MCKINSEY, SAP, KPMG FACIAL CRIMINAL COMMANDMENT FROM THE SOUTH AFRICAN REGULATOR
McKinsey was founded in 1
This is not the first time that McKinsey has undergone a thorough review in recent years. It was one of several companies accused by South African authorities of making reckless, negligent or fraudulent business decisions. McKinsey has also appeared in connection with cases against a Ukrainian oligarch and opioid manufacturer, the Times reported.
In February, McKinsey reached an agreement with the Justice Department's US Trustee Program for Chapter 11 cases he was working on. The company agreed to pay $ 15 million for officials making inappropriate information in connection with these bankruptcies.
But the program may not work with McKinsey. According to the report, the office is investigating further bankruptcy cases handled by McKinsey.
Under the terms of the settlement, the US Fiduciary Program agreed not to make further claims against McKinsey based on previous disclosures unless it stated the disclosures contained "misrepresentations or omissions" that prevented the Company from: to handle the cases.
READ MORE ABOUT FOX BUSINESS by CLICKING HERE