Pahre v. Auditor of State

LARSON, Justice.

First Security Acceptance Corporation, an industrial loan company under Iowa Code chapter 536A (1981), became insolvent in 1982. Investors who lost money on thrift certificates with First Security looked for payment to the guarantor,' In dustrial Loan Thrift Guaranty Corporation, Iowa Code ch. 536B (1981). The guaranty corporation paid the investors, then sued First Security’s accountants, Reese and Company, P.C., and Bill M. Reese, C.P.A. (“Reese”). Financial statements prepared by Reese overstated the financial health of First Security, the guaranty corporation claimed, and…