The management consulting firm McKinsey & Company is undergoing a federal criminal investigation into how it advises bankrupt companies, The New York Times reported Friday.
Prosecutors are investigating whether McKinsey puts his profits ahead of clients' best interests and used his influence over businesses in violation of Chapter 11 bankruptcy rules, according to the report, citing unnamed official at the Department of Justice.
Gary Pinkus, the company's president in North America, 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 had not received any more requests since. [1
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MCKINSEY, SAP, KPMG FACE CRIMINAL CLAMPS FROM SOUTH AFRICA REGULATOR
McKinse 19 . It consults for private companies, government agencies and other institutions.
This is not the first time McKinsey has faced scrutiny in recent years. It was one of several companies cited by South African authorities for making reckless, negligent or fraudulent business decisions. McKinsey has also come up in connection with cases against a Ukrainian oligarch and opioid manufacturer, the Times reported.
In February, McKinsey reached a settlement with the Department of Justice's US Trustee Program related to Chapter 11 cases handled. The company agreed to pay $ 15 million to do what officials said were insufficient disclosures related to these bankruptcies.
But the program may not 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 bring any further action against McKinsey based on prior disclosures, unless the disclosures were found to contain "erroneous notions or omissions" that would have prevented the company from taking cases.
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