Las Vegas Sun

November 24, 2009

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Massive fraud alleged at bankrupt Nevada company

Tuesday, July 30, 2002 | 11:14 a.m.

Attorneys who have spent months studying the books of bankrupt AgriBioTech of Henderson said the grass seed company may have defrauded creditors and investors out of $50 million to $100 million, a report said this week.

In Business Las Vegas, a sister newspaper to the Las Vegas Sun, reported the court-appointed trustee for AgriBioTech creditors has filed two lawsuits against former AgriBioTech managers, accountants and lawyers in hopes of recovering funds for those allegedly defrauded.

In Business also reported the trustee alleges AgriBioTech accountant KPMG LLP had a blatant conflict of interest because it was auditing AgriBioTech at the same time it had a lucrative contract to create a database and inventory management system for AgriBioTech.

The trustee alleges AgriBioTech misled creditors and investors by seeking their funds while failing to disclose it was "hopelessly insolvent."

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