Ernst & Young Face Fraud Charges

Ernst & Young Face Fraud Charges Over Lehman Collapse, WSJ Says
By Chris Peterson - Dec 20, 2010 1:54 PM GMT+0800

Ernst & Young LLP face being charged with civil fraud by New York prosecutors over their role as auditors for Lehman Brothers, the Wall Street Journal reported, citing people familiar with the matter.

State Attorney General Andrew Cuomo is ready to file the charges, which are based on alleged transactions by Lehman aimed at making the bank’s liabilities look less, the newspaper said.

Ernst & Young earned about $100 million in fees from Lehman between 2001 and 2008; the charges may be laid as early as this week, the WSJ said.


To contact the editor responsible for this story: Chris Peterson at cpeterson@bloomberg.net
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