Cuomo sues Ernst & Young over Lehman Brothers collapse. The New York Attorney General filed a civil fraud lawsui...

New York AG sues Ernst & Young in Lehman probe
NEW YORK: New York's Attorney General is suing Accounting giant Ernst & Young, accusing it of helping defunct Investment Bank Lehman Brothers hide billions of dollars in Debt from investors even as it teetered on the brink of financial collapse. The civil Lawsuit, filed by Attorney General Andrew Cuomo on Tuesday, days before he's due to be sworn in as the state's Governor, marks the first government legal action stemming from the collapse of Lehman Brothers, one of the first milestones of Wall ...

Ernst & Young accused of hiding Lehman troubles
Giant Accounting Firm Ernst & Young is being sued by New York prosecutors over allegations it helped to hide Lehman Brothers' financial problems, in the first major government legal action stemming from the Wall Street firm's 2008 downfall. The civil Fraud case contends that Ernst & Young stood by while Lehman used Accounting gimmickry to mask its shaky finances. The Lawsuit says Lehman ran "a massive Accounting Fraud," but it did not name as defendants any former top executives at the i...

Attorney General Andrew Cuomo Sues Ernst & Young In Lehman Brothers Fraud Scheme
With the fervor of a man who knows he's going to be out of a job in a few weeks (albeit to move up to a very good new one), Attorney General Andrew Cuomo is settng the law dogs on Ernst & Young in a Martin Act suit, charging the Accounting Firm "with helping Lehman Brothers Holding, Inc. engage in an Accounting Fraud involving the surreptitious removal of tens of billions of dollars of Fixed Income securities from Lehman’s Balance Sheet in order to deceive the public about Leh...

Ernst & Young accused of hiding Lehman troubles
Source: Reuters Giant Accounting Firm Ernst & Young was sued by New York prosecutors over allegations it helped to hide Lehman Brothers' financial problems, in the first major government legal action stemming from the Wall Street firm's 2008 downfall. The civil Fraud case contends that Ernst & Young stood by while Lehman used Accounting gimmickry to mask its shaky finances. The Lawsuit says Lehman ran "a massive Accounting Fraud," but it did not name as defendants any former top executives at th...

Ernst & Young in Lehman lawsuit
Accountancy giant Ernst & Young has been sued by New York's Attorney General over its role in the collapse of Lehman Brothers during the Financial Crisis in 2008. Andrew Cuomo claimed the firm was complicit in a "massive Accounting Fraud" perpetrated by Lehman. Ernst & Young said that it would "vigorously defend" itself. "There is no factual or legal basis for a claim to be brought against an auditor in this context," it said. Mr Cuomo takes a different...

Misc: Ernst & Young accused of fraud, Banks accused of illegal break-ins
by CalculatedRisk on 12/21/2010 10:14:00 PM Two stories: Lehman's Accounting was fishy. The other is a real fish story ... • From the NY Times DealBook: Cuomo Sues Ernst & Young Over Lehman The New York Attorney General on Tuesday sued Ernst & Young, accusing the Accounting Firm of helping Lehman Brothers, its client, “engage in a massive Accounting Fraud” by misleading investors about the Investment Bank’s financial health.• From Andrew Martin at the NY ...

Cuomo Sues Ernst & Young Over Lehman
The New York Attorney General on Tuesday sued Ernst & Young, accusing the Accounting firm of civil Fraud for helping its client Lehman Brothers mislead investors about the Investment Bank’s financial health. The Lawsuit, coming more than two years after Lehman collapsed and the Global Economy buckled, is the first major legal action stemming from the collapse of the investment bank. Ernst & Young, Lehman’s longtime outside auditor, certified the Financial Statements of Leh...

Its Official: Cuomo Sues Ernst & Young Over Lehman Debacle
As The Wall Street Journal indicated yesterday, Attorney General and Governor-elect Andrew Cuomo is filing a civil suit against Ernst & Young, Accounting Firm to epically bankrupt firm Lehman Brothers. (Read more...) ...

Ernst & Young sued by NY for fraud over Lehman
NEW YORK | Tue Dec 21, 2010 11:45am EST NEW YORK (Reuters) - Accounting Firm Ernst & Young was sued by New York state prosecutors on 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 ...

NY AG sues Ernst & Young in Lehman probe
NEW YORK (AP) — New York’s Attorney General claims in a civil Lawsuit that the Accounting Firm Ernst & Young helped the defunct Investment Bank Lehman Brothers deceive investors by removing billions of dollars from its Balance Sheet. Attorney General Andrew Cuomo (KWOH’-moh) filed the suit Tuesday. It alleges Ernst & Young auditors were aware that Lehman had concealed certain transactions that Regulators now say were fraudulent. The state suit takes aim at Lehman’...

Ernst & Young sued over Lehman
New York prosecutors accused Ernst & Young of helping Lehman Brothers engage in a “massive Accounting Fraud” by approving a move that temporarily reduced the brokerage firm’s Debt and gave investors an impression it was in a stronger financial condition. The civil Lawsuit, filed in a New York state court, alleges the auditing firm “substantially” helped Lehman mislead investors from 2001 until the brokerage firm’s 2008 Bankruptcy filing by signing off on the Accounti

Ernst & Young faces suit over Lehman
New York state prosecutors filed a civil Lawsuit against Ernst & Young alleging the auditing firm helped Lehman Brothers “engage in an Accounting Fraud” and deceive the public by using an Accounting move that reduced Debt at quarter end. The Lawsuit filed by Andrew Cuomo, New York Attorney General, in New York state court, alleges that Ernst & Young was “fully aware” of the Accounting treatment, known as Repo 105, which gave investors the impression that Lehman had less Deb

Cuomo suit: Ernst & Young hid Lehman losses
As predicted by several news outlets yesterday, AG Andrew Cuomo has filed suit against the Accounting Firm of Ernst & Young, charging that the outfit helped Lehman Brothers conceal the fact that it was on the verge of collapse. From the AG’s news release: The Attorney General’s Lawsuit claims that for more than seven years leading up to Lehman’s Bankruptcy filing in September 2008, Lehman had engaged in so-called “Repo 105” transactions, explicitly approved by E&Y. Th

Cuomo Sues Ernst & Young
Here’s the Martin Act Lawsuit filed by outgoing AG/Governor-elect Andrew Cuomo against Ernst & Young, which alleges the firm gave clean audit opinions as auditor of Lehman Brothers despite knowing that Lehman fraudulently concealed “Repo 105″ transactions. Cuomo alleges Ernst & Young helped Lehman engage in an Accounting Fraud involving the surreptitious removal of tens of billions of dollars of Fixed Income securities from Lehman’s Balance Sheet in order to de...

New York state AG sues Ernst & Young
Cuomo sues Ernst & Young Posted by Colin Barr December 21, 2010 11:31 am New York sued the giant Accounting Firm Ernst & Young Tuesday, saying it helped Lehman Brothers deceive investors about its true health for seven years. The complaint, filed in state Supreme Court, seeks the repayment of at least $150 million in fees the audit firm collected between 2001, when Lehman's aggressive Accounting began, and 2008, when the venerable bank collapsed, precipitating a global bank run. Se...

New York sues Lehman Brothers' accountants
The Investment Bank collapsed in September 2008, serving as an immediate and symbolic reality check for Wall Street -- one of the giants in the financial world coming up short on funds in a high-stakes run on the bank. New York's Governor-elect and current Attorney General Andrew Cuomo said Lehman's Accounting Firm, starting in 2001, helped shift as much as $50 billion in assets to foreign banks just before they would need to appear on the bank's Financial Statements, The Wall Street Journal re...

Cuomo suit: Ernst & Young hid Lehman losses
As predicted by several news outlets yesterday, AG Andrew Cuomo has filed suit against the Accounting Firm of Ernst & Young, charging that the outfit helped Lehman Brothers conceal the fact that it was on the verge of collapse. From the AG’s news release: The Attorney General’s Lawsuit claims that for more than seven years leading up to Lehman’s Bankruptcy filing in September 2008, Lehman had engaged in so-called “Repo 105” transactions, explicitly approved by E&Y. Th

New York state AG sues Ernst & Young
Cuomo sues Ernst & Young Posted by Colin Barr December 21, 2010 11:31 am New York sued the giant Accounting Firm Ernst & Young Tuesday, saying it helped Lehman Brothers deceive investors about its true health for seven years. The complaint, filed in state Supreme Court, seeks the repayment of at least $150 million in fees the audit firm collected between 2001, when Lehman's aggressive Accounting began, and 2008, when the venerable bank collapsed, precipitating a global bank run. Se...

Attorney General Cuomo giving Ernst and Young a pass? Why civil and not criminal?
Is this politics? Or is this legitimate? Why civil and not criminal? The Wall Street Journal reports this morning that NY Attorney General Andrew Cuomo (who is soon to be NY Governor) is getting ready to file CIVIL Fraud charges against Ernst & Young for it's role in the collapse of Lehman Brothers. As you know, the collapse of Lehman Brothers hurt thousands and thousands...and you have to wonder why New York Attorney General Andrew Cuomo is not pursuing CRIMINAL fraud. There is a big differ...

It's Official: Cuomo Sues Ernst & Young Over Lehman Debacle
As The Wall Street Journal indicated yesterday, Attorney General and Governor-elect Andrew Cuomo is filing a civil suit against Ernst & Young, Accounting Firm to epically bankrupt firm Lehman Brothers. Mr. Cuomo's office alleges that Ernst & Young "explicitly approved" Lehman's Repo 105 transactions, Accounting moves that helped Lehman disguise its leverage levels in quarterly Financial Statements. Repo 105, according to Mr. Cuomo, helped mislead investors about the soundness of Lehman...

Ernst & Young: Too big to fail
Don't look for indictments in Andrew Cuomo's case against the Accounting Firm.  That could kill the business, and no one wants that. If you're going to screw up, make sure you're working at a company that Regulators aren't going to allow to fail. That's the lesson not only for big financial companies, but for the Final Four big national Accounting firms as well. Take Ernst & Young, which is a target of New York Attorney General Andrew Cuomo for its alleged role in helping Lehman Brothe...

Ernst & Young 'sat by silently' as Lehman Brothers tried to hide financial troubles, lawsuit alleges
Ernst & Young (E&Y) "sat by silently" as Lehman Brothers tried to conceal its Financial Troubles from investors in the months leading up to its implosion, New York state prosecutors have alleged in a Lawsuit....

Cuomo: Ernst & Young Knew Lehman’s Carpet Didn’t Match the Drapes
Deception. Everyone hates it, especially Attorney General Andrew Cuomo, who is doing his darndest to expose any and all wrongdoers before he is sworn in as Governor on January 1. As soon as this week, the Journal reports, Cuomo will file suit against Ernst & Young, the Accounting Firm charged with auditing Lehman Brothers, for allegedly turning a blind eye to transactions in which the bank used funky Accounting to make their risk seem less than it actually was. The transactions in question, kno...

Ernst & Young May Face Fraud Charges in the Lehman Debacle
Accounting giant Ernst & Young is expected to face civil Fraud charges by New York prosecutors over its alleged role in the spectacular collapse of Lehman Brothers, according to a Wall Street Journal report. The Lawsuit could come as early as this week and would mark the first time a Big Four Accounting Firm has been charged in regard to the Financial Crisis. But for some it may come as no surprise that prosecutors are targeting Ernst & Young. In fact, it may have seemed inevitable. Ea...

Ernst & Young May Be Charged In Lehman Collapse
NEW YORK (AP)  - Accounting Firm Ernst & Young LLC may face civil Fraud charges in New York for its alleged role in the demise of Lehman Brothers, according to a report. The Wall Street Journal, citing anonymous sources, said in a Monday article that State Attorney General and New York Governor-elect Andrew Cuomo may file the Lawsuit this week, with the state possibly seeking fines and other penalties. The case alleges that Ernst & Young did not act in the appropriate mann...