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AAI Addresses ‘Deconcentrating Reforms’ at Big Four Accounting Firms
The American Antitrust Institute seeks to promote competition in the auditing industry.
SEC Sues E&Y, Six Partners for Alleged Role in Bally’s Accounting Fraud
Three of six E&Y partners charged are members of the firm’s national office.
Australia: Investors Seek to Add PwC to Centro Class Action
Centro investors in court in Melbourne today seeking to add claims against PwC.
Hong Kong: Ernst & Young Settles Akai Holdings Lawsuit
New evidence emerging on Friday leads to settlement of 7 year old case.
Michigan Announces $109 Million Settlement With E&Y in HealthSouth Class Action
On Monday, Michigan Attorney General Mike Cox and Treasurer Robert Kleine announced a $109 million settlement with Ernst & Young resulting from audits the firm conducted that allegedly failed to expose massive fraud taking place when E&Y served as HealthSouth Corporation’s auditing firm. According to Cox, “the settlement is one of the largest ever obtained [...]
Del. Court Allows Deloitte’s Case Against Its Former Vice Chairman to Proceed
On Wednesday, Delaware Chancery Court Vice Chancellor John Noble ruled that Deloitte & Touche LLP can proceed with efforts to recover compensation from Thomas Flanagan, a former audit partner it accuses of improperly trading in client stocks. According to Reuters, Deloitte alleges that Flanagan, who was at one time vice chairman of the firm, is [...]
New Century Debtors File Billion Dollar Lawsuit Against KPMG
A liquidating trust formed by New Century Financial Corp. debtors filed a billion-dollar lawsuit today against KPMG International and its U.S. arm, KPMG LLP. The lawsuit alleges that KPMG performed “grossly negligent audits” that helped trigger the collapse of New Century by covering up “catastrophic” accounting and other problems at New Century, Reuters reports. “As [...]
CBS News: Madoff Auditor David Friehling to be Arrested Today
Madoff’s accountant David Friehling, who was already sued by the SEC today, has also been charged criminally with filing false audits and aiding and abetting security fraud, CBS News reports. CBS News reports learned that Friehling will be arrested today in connection with the Madoff scandal. From 1991 through 2008, Friehling, a CPA, and [...]
SEC Charges Madoff Auditors With Securities Fraud, “Pretending” to Perform Audit
The SEC has charged the auditors of Bernard Madoff’s broker-dealer firm with committing securities fraud by falsely representing that they had conducted legitimate audits, when in fact they had not. The SEC announced today that it has filed a complaint in the SDNY alleging that from 1991 through 2008, certified public accountant David G. Friehling [...]
Liability for Accountants and Others in the Financial Crisis
On February 24, 2009, Stuart Grant of Grant & Eisenhofer P.A. and Michael Young of Willkie Farr & Gallagher LLP discussed the subject of the potential liability of professionals in the financial crisis with Securities Docket’s Bruce Carton. The discussion was part of a webcast in which Grant and Young collaborated on a presentation on [...]