NY AG sues Ernst & Young in Lehman probe

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 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 ...

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...

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...

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...

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 ...

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...

Cuomo lashes out at Ernst & Young
Say what you like about Andrew Cuomo, he gives good complaint: E&Y substantially assisted Lehman Brothers Holdings Inc., now bankrupt, to engage in a massive Accounting Fraud, involving the surreptitious removal of tens of billions of dollars of securities from Lehman’s Balance Sheet in order to create a false impression of Lehman’s Liquidity, thereby defrauding the investing public… Not only were the transactions concealed, but Lehman’s Financial Statements affirmatively, and f

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

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...

Say It Aint So!
It seems like only yesterday that Arthur Andersen, then the largest Accounting Firm in the world, was found Guilty of colluding with its client, Enron, in the latter’s falsification of its Financial Statements which Andersen, as the company’s auditor, was legally and ethically required to reveal. Now Ernst & Young, Lehman Bros. auditor, is facing civil action for its role in Lehman’s collapse: New York prosecutors are poised to file civil Fraud charges against Ernst ...

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...

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 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...

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 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 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

Lehman suit shreds auditors' teflon coating
One of the toothless Accounting watchdogs that did so much to bring us the Financial Crisis is about to get an overdue scolding. New York's Attorney General is pursuing a civil suit against Ernst & Young, the Big 4 Accounting Firm that signed off on Lehman Brothers' financial reports in the years leading up to the Investment Bank's panic-inducing September 2008 collapse. Bad auditor! The case comes nine months after the Bankruptcy examiner in the Lehman case said he believed Ernst...

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...

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...

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...

Good With GAAP: A Preview of Ernst & Youngs Legal Defense?
By Ashby Jones Ernst & Young has some time before having to respond to the Lawsuit filed Tuesday by Andrew Cuomo (here, here for LB coverage). But the American Lawyer’s Susan Beck on Wednesday offers up an interesting preview of how the company might approach its defense strategy. (Before we get to that, some housekeeping to attend to: E&Y in this case, Beck reports, will be repped by Barry Berke and Kramer Levin and Miles Ruthberg and Jamie Wine of Latham & Watkins.) Cuomo...

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

Prosecutors to sue Ernst & Young over Lehman collapse: report
Bangalore | Mon Dec 20, 2010 3:57am EST Bangalore (Reuters) - Prosecutors in New York are set to file civil Fraud charges against Accounting Firm Ernst & Young LLC over the collapse of Lehman Brothers Holdings Inc, the Wall Street Journal said, citing people familiar with the matter. The suit, led by Andrew Cuomo, could come as early as this week and may seek to impose fines and other penalties, the paper said. No one at Ernst & Young was available for comment outside regular U.S. bus...