December 8, 2004 |
The Securities and Exchange Commission is investigating accounting firm Ernst & Young for its role in designing and then auditing a financial product that PNC Financial Services Group Inc. allegedly used to inflate profit, an Ernst & Young spokesman said Tuesday. "We are cooperating fully with the SEC in its review," spokesman Charles Perkins said. American International Group Inc.
July 14, 2004 |
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 |
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.
June 8, 2004 |
Korn/Ferry International said Monday that the Securities and Exchange Commission was conducting an informal inquiry into a potential conflict of interest involving a former director of the executive recruiting firm and its outside auditor. Korn/Ferry said the SEC was looking into payments made by Ernst & Young to a company owned by Mark C. Thompson, who had been on the Korn/Ferry board.
May 25, 2004 |
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.
April 17, 2004 |
A Securities and Exchange Commission judge Friday barred Ernst & Young, the third-biggest U.S. accounting firm, from accepting new public company audit clients for six months because of independence violations. Ernst & Young's business venture with audit client PeopleSoft Inc. violated SEC rules that are designed to prevent conflicts of interest in audits, SEC Chief Judge Brenda Murray said in a 69-page ruling in Washington. Murray also ordered Ernst & Young to pay $1.
September 26, 2003 |
Signaling their intent to crack down on corporate coverups, federal authorities Thursday arrested a former Ernst & Young partner on charges the accountant tampered with records providing insights into the collapse of online credit card issuer NextCard Inc. Thomas Trauger, who oversaw Ernst & Young's financial audits of NextCard, is accused of altering key financial documents after banking regulators raised doubts about the San Francisco-based company's accounting practices in October 2001.
July 3, 2003 |
Ernst & Young, one of the nation's largest accounting firms, said Wednesday that it agreed to pay $15 million and let tax agents examine its books under a settlement ending an Internal Revenue Service investigation into the disclosure of tax shelters marketed and sold to wealthy clients. Ernst & Young spokesman Kenneth Kerrigan said the accounting firm admitted no wrongdoing. "We still stand by our advice," he said. The IRS touted the accord as a model for future settlements.
May 31, 2003 |
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.