As the Bernard Madoff news rolled on, we noted that an obscure, secretive audit firm was an obvious red flag, one that regulators, investors and others should have caught. As the Stanford Group scandal continues to unfold, the wisdom of this lesson is evident once again.

Two people in charge at C.A.S. Hewlett & Co, which was identified by Allen Stanford as auditors of his offshore bank, told Reuters "there was no evidence of any ties to the 58-year-old financier and sports entrepreneur." The guy who would know, they said, was the founder, who died in January. C.A.S. Hewlett has offices at several London addresses, but the phone numbers were either disconnected or rang unanswered. So you would think that anyone doing any due diligence at all would start with the auditors. If they do not inspire confidence, you want to pass. 

For more:
- here's the article via Financial Week

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