McKinsey & Company's management consulting firm is under federal criminal investigation in a way it provides advice to bankruptcy firms, The New York Times reported Friday.
The prosecutors are investigating whether McKinsey placed the profits ahead of clients' best interests and used his influence over the companies in violation of Chapter 11 bankruptcy, according to the report, which cited named officials of the Department of Justice.
Gary Pinkus, the company's chairman in North America, told the Times that McKinsey received a request from the United States Attorney General for the Southern District of New York last year, responded and had not received any more requests since. [1
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MCKINSEY, SAP, KPMG FACE CRIMINAL COMPLAINTS FROM SOUTH AFRICA REGULATOR
McKinsey was founded operates in 66 countries. It consults for private companies, government agencies and other institutions.
This is not the first time McKinsey has faced the last couple of years. It was one of several companies sued by South African authorities for making reckless, negligent or fraudulent business decisions. McKinsey has also come up with cases against a Ukrainian oligarch and opioid producers, the Times reported.
In February, McKinsey reached a settlement with the Department of Justice & # 39; s U.S. Trustee Program related to Chapter 11 cases it dealt with. The company agreed to pay $ 15 million to do what officials said was insufficient disclosures related to these bankruptcies.
But the program cannot be done with McKinsey. The office is looking at other bankruptcy cases handled by McKinsey, according to the report.
Under the terms of the settlement, the United States Trustee Program agreed not to institute further lawsuits against McKinsey based on prior disclosures, unless the disclosures were found to contain "erroneous representations or omissions" that would have prevented the company from taking the cases.
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