E&Y sued over Lehman audit

first_img whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofHomemade Tomato Soup: Delicious Recipes Worth CookingFamily Proof NEW YORK prosecutors started a civil lawsuit against accountancy firm Ernst & Young yesterday over the company’s audits of Lehman Brothers ahead of the bank’s collapse. It is the first government-led legal action to be brought against those involved in Lehman’s bankruptcy in September 2008, which sparked the global credit crisis.New York attorney general Andrew Cuomo is seeking the return of more than $150m (£97m) in fees that Ernst & Young made auditing Lehman between 2001 and 2008, as well as other damages.Ernst & Young encouraged Lehman to engage in “massive accounting fraud”, according to the lawsuit. It alleges billions of dollars worth of Repo 105 transactions, using an accounting technique to temporarily remove liabilities from a balance sheet, without telling investors, were used according to the 32-page filing at the New York Supreme Court.Lehman justified the deals with written opinions from Linklaters, despite the law firm’s advice in 2001 to place limits on the use of Repo 105, said the filing. “This practice was a house-of-cards business model designed to hide billions in liabilities in the years before Lehman collapsed,” Cuomo said in a statement. “Just as troubling, a global accounting firm, tasked with auditing Lehman’s financial statements, helped hide this crucial information from the investing public.”Ernst & Young did not comment last night, but the firm is expected to fight the case. Lehman’s bankrupcty examiner Anton Valukas said earlier in the year criminal charges could still emerge. E&Y sued over Lehman audit KCS-content Tuesday 21 December 2010 8:40 pmcenter_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldHealthyGem”My 600-lb Life” Star Dropped 420 Pounds, See Her NowHealthyGemZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definition Show Comments ▼ Share Tags: NULLlast_img