US

Ernst & Young LLP

Big Four international accounting firm sanctioned for audit failures in Wirecard, Lehman Brothers, and independence violations.

AUDIT FIRM RECORD

Audit Firm: Ernst & Young LLP
Jurisdiction: US
Indexed Audit Cases: 10 major corporate fraud cases.
Regulatory History: Big Four international accounting firm sanctioned for audit failures in Wirecard, Lehman Brothers, and independence violations.

CLIENT CASES INVOLVING ERNST & YOUNG LLP

10 CASES IN LIBRARY

Case Title	Jurisdiction	Status	Primary Scheme	Overstatement	Action Date
Wirecard AG: 1.9 Billion Euro Fictitious Cash Fraud	DE	Adjudicated	fictitious cash and assets	$2.1B	June 22, 2020
Luckin Coffee: $300M Fabricated App Sales and Circular Cash Scheme	CN	Settled, neither admitted nor denied	fictitious revenue	$311.0M	September 20, 2022
Toshiba Corporation: $1.9B 'Challenge' Pressure Profit Inflation	JP	Adjudicated	premature recognition	$1.9B	September 20, 2017
Sino-Forest Corporation: Fictitious Timberland Holdings and Valuation Fraud	CA	Adjudicated	reverse merger fraud	$3.0B	September 20, 2013
Lehman Brothers: $50B Repo 105 Balance Sheet De-leveraging	US	Adjudicated	debt classification and covenant concealment	$50.0B	September 20, 2010
Noble Group: Aggressive Mark-to-Model Commodity Contract Valuations	SG	Settled, neither admitted nor denied	fair value manipulation	$1.5B	September 20, 2022
Thomas Cook: Going-Concern Concealment and Software Capitalization	GB	Adjudicated	going concern concealment	$1.1B	September 20, 2021
AOL Time Warner: $1B Round-Trip and Nonmonetary Advertising Swaps	US	Settled, neither admitted nor denied	barter and nonmonetary	$1.0B	September 20, 2004
WeWork: 'Community Adjusted EBITDA' and Concealed Self-Dealing Leases	US	Settled, neither admitted nor denied	misleading non gaap and kpis	$1.6B	September 20, 2021
Ernst & Young: Independence Violations from Commercial and Romantic Ties	US	Settled, neither admitted nor denied	independence violation	$0	September 20, 2016