Following the revelations by “The Accounting Five,” LIvent hired KPMG do investigate. This is an odd choice, considering how badly they botched the due diligence investigation. Why, didn’t Livent managers didn’t hire someone completely independent – or better yet – call the cops?
But the assertion that new Livent managers planted incriminating documents in Drabinsky’s office might be a tougher sell. After all, documents were found on Augst 11 – that’s just four days after the accounting department completed their initial interviews. Is it conceivable that Livent managers could have conducted an exhaustive search of the executive suite and the rest of Livent’s offices and found there were no documents that indicated Drabinsky and Gottlieb knew about the fraud, created those documents and then planted them in the office?
And what about those documents with Drabinsky’s handwriting on them?