Fraud Claims Reinstated Against KPMG in N.Y. Beechwood Re Case

NEW YORK — A New York appellate court has reinstated a lawsuit accusing the accounting firm of KPMG LLP of knowingly enabling the founders of the now defunct Platinum Partners LP hedge fund to fraudulently induce two insurers into investing more than $500 million in a reinsurance company in furtherance of a Ponzi scheme.

In a Dec. 1 order, the New York Appellate Division, 1st Department, ruled that plaintiffs Bankers Conseco Life Insurance Co. and Washington National Insurance Co. adequately alleged their claims of aiding and abetting fraud.

From 2003 to 2015, Platinum Partners, LP reported average annual returns of …