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July 14, 2004 | From Associated Press
A three-judge panel in Chicago has ruled that a $2-billion federal lawsuit against Ernst & Young in connection with the failure of a Chicago savings and loan in 2001 is without merit. The lawsuit, brought by the Federal Deposit Insurance Corp., accused accounting giant Ernst & Young of fraud and negligence in misstating Superior Bank's assets. New York-based Ernst & Young blamed Superior's collapse on its board of directors and the slumping economy in 2001.
June 15, 2004 | James Bates, Times Staff Writer
A confidential audit of a controversial new electronic system being employed by Nielsen Media Research to measure TV-watching habits has found that 1 in 6 viewers was improperly classified as black and 1 in nearly 14 was improperly labeled Hispanic. An executive summary of the Ernst & Young audit, obtained Monday by The Times, contained a number of other criticisms, including that those using the electronic devices were poorly trained.
May 25, 2004 | From Reuters
Federal prosecutors are conducting a criminal probe of Ernst & Young's promotion of tax shelters for clients, the accounting firm said Monday. A spokesman said Ernst & Young was cooperating with the investigation, but declined to give further details. News of the probe first appeared in the Wall Street Journal. The investigation was launched last week by the U.S. attorney's office for the Southern District of New York, which is also conducting a similar probe at accounting firm KPMG.
May 31, 2003 | From Associated Press
In a rare move, federal regulators are seeking to have Ernst & Young suspended from accepting new corporate clients for six months because of the big accounting firm's alleged failure to remain completely independent from companies whose books it audits. The Securities and Exchange Commission contended in a legal proceeding before an administrative law judge that Ernst & Young's internal controls were inadequate to prevent its auditors from becoming too cozy with client firms.
April 3, 2003 | Terril Yue Jones, Times Staff Writer
Intel Corp. asked Ernst & Young, its auditor of 35 years, to reapply for the job along with the other three giant accounting firms as part of an effort to make Intel's corporate governance more transparent, the company said Wednesday. The world's largest semiconductor manufacturer said that in the wake of heightened investor and regulatory scrutiny of large corporations over the last year, it wanted to consider taking a "fresh look" at its financial accounting.
December 24, 2002 | From Reuters
Former clients have sued accounting firm Ernst & Young and two law firms for more than $1 billion for allegedly convincing them to enter into illegal tax shelters, the law firm representing the plaintiffs said in a statement Monday. The lawsuit alleged that the firms convinced more than 50 clients to enter into currency option trades to create paper capital losses that offset real capital gains on which they would have had to pay taxes, law firm Fensterstock & Partners said.
November 14, 2002 | From Bloomberg News
The Securities and Exchange Commission refiled charges that Ernst & Young violated auditor-independence rules, after the first case was dismissed because only one commissioner voted. The SEC is charging the accounting firm with compromising the independence of its audits of PeopleSoft Inc. by entering a business venture with the Pleasonton, Calif.-based software company. Ernst plans to contest the charges.
November 7, 2002 | David Wharton, Times Staff Writer
The horse racing industry has enlisted a major accounting firm and its team of high-tech security experts to help deal with the kind of computer betting scam that allegedly occurred during Breeders' Cup races last month. But even as experts began analyzing tote systems that handle wagers for tracks nationwide, a troubling question echoed across the sport: Might such scams have gone undetected in the past?
November 2, 2002 | From Reuters
Bank regulators sued accounting firm Ernst & Young on Friday, alleging fraud, negligence and professional misconduct relating to audits of failed Chicago savings institution Superior Bank. The Federal Deposit Insurance Corp., in a lawsuit filed in the U.S. District Court for the Northern District of Illinois, sought $548 million in compensatory damages, plus punitive damages.
November 1, 2002 | From Bloomberg News
Three auditors who worked for Ernst & Young may be charged by the Securities and Exchange Commission for their role in an alleged accounting fraud that cost Cendant Corp. $3.2 billion, people familiar with the case said. The SEC's enforcement staff has notified the men that it plans to recommend that the commission file charges against the three, who audited books at CUC International Corp., the people said. CUC merged with HFS Inc. in 1997 to form Cendant.
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