New Earthshell, a subsidiary of YA Global Investments, funneled the contributions of two Yorkville funds to YA TALF Holdings, a special purpose entity that was formed to purchase asset-backed securities.
Amerco also claims PwC acted recklessly when it told Amerco it had to consolidate the special-purpose entity on its own financial statements in 2002, causing Amerco to restate two years of numbers and wipe out 92% of its reported 2001 net income.
Although Mrs Fastow filed false tax statements and created and administered an off-balance-sheet special-purpose entity that Enron used to hide its control of some Californian wind farms, some reports have claimed she was an innocent who fell under the malevolent influence of her husband.
In both cases what really makes the entity valuable and successful is the very special way the intangibles and tangible assets come together to generate a present value of future net income.