Biography

Thomas F. Falkenberg is a partner of Williams Montgomery & John Ltd. and a member of the firm’s professional liability and commercial litigation practice groups. He focuses his practice on defending accountants, lawyers and brokers, as well as providing significant risk management guidance to accounting firms. He is “AV Preeminent” peer review rated by Martindale-Hubbell, reflecting the highest peer recognition for ethical standards and legal ability.

Mr. Falkenberg joined Williams Montgomery & John in 2007 after practicing as a partner at a large Chicago law firm and working in house as senior litigation counsel for Arthur Andersen LLP. He currently serves as special counsel for Grant Thornton LLP and acts as general counsel for numerous mid-sized accounting firms. He also serves as the risk manager for General Star Insurance Company’s accountant insureds.

Mr. Falkenberg has tried to verdict more than 30 cases, and has participated in more than 100 arbitrations as both an arbitrator and litigant. He has defended more than 200 lawsuits against accountants and other professionals.

Mr. Falkenberg has represented both accounting firms and individual accountants in state and federal courts throughout the United States, as well as before many state licensing and accounting boards, the American Institute of CPAs (AICPA) and the Securities and Exchange Commission (SEC). He also has represented individual defendants in professional negligence matters and corporate defendants in commercial and tort cases. His clients include “Big 4″ accounting firms, many large regional firms and many of the largest accounting firms in Chicago, as well as accountants insured by the two largest insurers of accountants.

Mr. Falkenberg regularly assists insurers and accounting firms in improving their risk management programs and providing hotline services to their insureds, as well as conducting seminars and lectures and drafting on liability and risk management issues.

Education/Bar Admissions

Mr. Falkenberg received a B.B.A. in accountancy in 1987 from the University of Notre Dame, where he was a member of the Beta Alpha Psi Accounting Honor Society. He received his J.D. in 1990 from Notre Dame Law School. Mr. Falkenberg served as an adjunct professor of accounting at the University of Notre Dame from 1988-1990. He also is a licensed real estate broker.

Mr. Falkenberg was admitted to the Illinois bar in 1990 and also has been admitted to the following federal trial courts:

• U.S. District Court, Northern District of Illinois (including the trial bar)
• U.S. District Court, Eastern District of Wisconsin

Professional Activities

Mr. Falkenberg is active in various professional and civic organizations, including:

• American Bar Association
• Chicago Bar Association
• Illinois State Bar Association
• Defense Research Institute
• Professional Liability Underwriting Society

He also serves on the Board of Directors of Elmhurst Youth Baseball, and on the risk committee for a large regional accounting firm.

Mr. Falkenberg has published articles and spoken on various topics relating to professional liability matters relating to accounting, legal and real estate malpractice.

Representative Cases

Chestnut Corp. v. Pestine, Brinati and Gamer, Circuit Court of Cook County, Ill.: Defended accounting firm on claim for negligent misrepresentation in first reported case involving the Illinois Accountant Privity Act.

Pippen v. Wineberg & Lewis, Circuit Court of Cook County, Ill.: Obtained summary judgment for accounting firm client in defense of lawsuit brought by professional basketball player alleging negligence.

LaFlamboy v. RSM McGladrey, Inc., Circuit Court of Cook County, Ill.: Obtained summary judgment for accounting firm client in defense of lawsuit alleging negligent tax services.

Stop-N-Go Stores of Madison v. Virchow, Krause & Co., Circuit Court of Dane County, Wis.: Obtained summary judgment for accounting firm client in defense of lawsuit alleging negligence in conducting an audit. Summary judgment granted based on contractual limitations period in client engagement letter.

In re Nicor, Securities and Exchange Commission: Represented KPMG in an SEC investigation.

Dougherty v. Zimbler, U.S. District Court, Northern District of Illinois: Obtained summary judgment for accountant client in defense of fraud and negligence lawsuit arising out of the sale of a business.

Petra Financial Advisors v. Baker Tilly Virchow Krause, LLP, Circuit Court of Hennepin County, Minn.: Obtained favorable settlement on behalf of accounting firm in claim of audit negligence arising out of a large ponzi scheme.

Partner v. Grant Thornton, LLP, American Arbitration Association: Won decision for accounting firm client in wrongful termination lawsuit brought by a partner. Panel found in favor of client on all counts.

Publications

“SSARS 19 – The New Standard for Compilations and Reviews,” AICPA Newsletter, January 2011.

“Limitation-of-Liability Clauses in Accountants’ Engagement Letters: Are they Enforceable?,” Illinois Bar Journal, November 2003.

“Risk Management Techniques: Limiting Liability of the Accountant,” PLUS Journal, October 2002.

“Sale of a Tax Exempt Hospital to a For-Profit Corporation: Federal Tax Issues,” Journal of Health and Hospital Law, May 1992.

Speeches and Presentations

“Client & Engagement Acceptance,” CNA Insurance Company webinar for insured accountants, November 2010.

“SSARS 19: The New Standard on Compilations,” CNA Insurance Company, Accountants and Lawyers Defense Network, Fall 2010.

“Defending the Ponzi Scheme”, CNA Insurance Company, Accountants and Lawyers Defense Network, Fall 2009.

“Effective Use of Jury Consultants and Mock Juries,” CNA Insurance Company, Accountants and Lawyers Defense Network, Fall 2008.

“The Application and Use of Accountant-Client Privilege,” CNA Insurance Company, Accountants and Lawyers Defense Network, Fall 2007.

“Risk Management Techniques for the Accountant,” Lemme Insurance Brokers, Best Practices Forum on Accountant’s Liability, September 2007.

“Defending Claims Against Accountants,” CNA Insurance Company, Accountant’s Risk Management Summit, June, 2007.

“Proper Methods of Responding to Subpoenas for Accountants,” CNA Insurance Company, Accountants and Lawyers Defense Network, Fall 2006.

“E & O Litigation Trends: Don’t Join the Club,” Re/Max International franchise owners conference, October 2003.