Skip to comments.Ernst & Young Sued by NY for Fraud over Lehman
Posted on 12/21/2010 12:16:25 PM PST by camerongood210
Accounting firm Ernst & Young was sued by New York state prosecutors Tuesday, accused of helping to hide financial risks at Lehman Brothers Holdings Inc before the Wall Street firm's 2008 collapse.
The civil fraud case seeks $150 million in fees that the accounting firm collected, New York Attorney General Andrew Cuomo said in a statement.
The lawsuit also seeks investor damages and other relief in what is one of the biggest government cases involving an accounting firm since Arthur Andersen was criminally indicted in 2002 over the Enron scandal.
Ernst & Young was Lehman's outside auditor from 2001 until the investment bank filed for bankruptcy in September 2008.
Ernst & Young was not immediately available for comment on Cuomo's lawsuit, which was filed in New York State Supreme Court.
(Excerpt) Read more at foxbusiness.com ...
Cuomo digs enough here he’ll find Elliot Spitzer in the woodpile and will that ever precipitate some fun as the criminal factions within New York’s Democrat party turn on each other with violence.
Big time accounting has become a hazardous business.
The Arthur Andersen ruling that destroyed the firm was overturned a few years later...too little, too late.
If they lose the 150 million it only requires E&Y to return the fees taken in the commission of aiding and abetting a multi billion dollar collapse which later cost you and me trillions.
Not even asking for interest or a punative punishment.
It’s just walking around money, what a freekin bad joke.
Lehman Brothers managed Florida's public assets, sold securities, underwrote bond deals and handled residential and commercial mortgages. Local Fla governments are stuck with about $556M in tainted securities they can't redeem.
Counties, cities and school districts face $300M losses for roads, sewers and schools; $290M less to pay for hurricane claims, health care, community colleges, disabled infant care.
Biggest casualty is Fla's giant pension fund. More than $440M disappeared for 1 million retirees and public employees.
The fund holds another $53M in Lehman bonds that lost most of their value; there's $323M tied up in worthless mortgage-backes securities from Lehman (if sold today, the pension fund would be out $188M more).