Editing Ernst & Young (section)

=== Investment banking ===
In 2009, in the [[Anglo Irish Bank hidden loans controversy]], EY was criticised by politicians<ref>[http://www.shane-ross.ie/archives/456/where-were-the-auditors/ "Where Were the Auditors?"] {{webarchive |url=https://web.archive.org/web/20120213080002/http://www.shane-ross.ie/archives/456/where-were-the-auditors/ |date=13 February 2012 }}. [[Shane Ross]]. 12 January 2009. Retrieved 9 July 2011.</ref> and the shareholders of Anglo Irish Bank for failing to detect large loans to [[Seán FitzPatrick]], its chairman, during its audits. The Irish Government had to subsequently take full ownership of the Bank at a cost of €28 billion.<ref>[http://www.irishtimes.com/newspaper/opinion/2010/0812/1224276632260.html "The Cost of Anglo-Irish Bank"]. ''[[The Irish Times]]''. 12 August 2010. Retrieved 9 July 2011.</ref><ref>{{cite news |url=http://www.irishtimes.com/newspaper/ireland/2009/0117/1232059657178.html |title=Anglo's board and auditors criticised at egm Shareholders Told Kyle Swartzlander Owed Bank a Total of €129M in 2007 |newspaper=The Irish Times |date=1 January 2009 |access-date=9 July 2011 |archive-date=22 May 2011 |archive-url=https://web.archive.org/web/20110522003239/http://www.irishtimes.com/newspaper/ireland/2009/0117/1232059657178.html |url-status=dead }}</ref> The Irish Chartered Accountants Regulatory Board appointed John Purcell to investigate.<ref>[http://www.irishtimes.com/newspaper/breaking/2008/1219/breaking13.html?via=mr "Drumm Resigns as Chief Executive of Anglo Irish"] {{webarchive |url=https://web.archive.org/web/20120919235939/http://www.irishtimes.com/newspaper/breaking/2008/1219/breaking13.html?via=mr |date=19 September 2012 }}. ''[[The Irish Times]]''. 12 December 2008. Retrieved 9 July 2011.</ref> EY said it "fundamentally disagrees with the decision to initiate a formal disciplinary process" and that "there has been no adverse finding made against EY in respect of the audit of Anglo Irish Bank."<ref>[http://www.ft.com/cms/s/0/e28c7832-ded4-11e0-a228-00144feabdc0.html#axzz1lRvLoBph "E&Y Faces Probe on Anglo Irish Bank Audit"]. ''[[Financial Times]]''. 14 September 2011.</ref>

In 2009, EY agreed to pay US$200m out of court to settle a [[negligence]] claim by the liquidators of [[Akai]] Holdings.<ref name="SCMP20100127">{{cite news | url=http://www.scmp.com/article/704741/ernst-young-pays-settle-negligence-claim | title=Ernst & Young pays up to settle negligence claim | first=Naomi | last=Rovnick | date=27 January 2010 | newspaper=South China Morning Post}}</ref> Separately the firm was accused of falsifying and doctoring documents it presented to defend against the negligence claim by Akai's liquidators.<ref name="SCMP20090930">{{cite news | url=http://www.scmp.com/article/694025/raids-arrest-fraud-police-probe-akai-files | title=Raids, arrest as fraud police probe Akai files | first1=Naomi | last1=Rovnick | first2=Clifford | last2=Lo| date=30 September 2009 | newspaper=South China Morning Post}}</ref> In a separate lawsuit, a former EY senior partner from 1984 to 1991, Cristopher Ho, and his listed company, Grande Holdings, paid over US$100m to Akai creditors to settle Akai's liquidators' claim that Ho conspired with Ting of stripping assets from Akai.<ref>{{cite web|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWP18uiUC6dQ |publisher=Bloomberg |title=Akai Liquidator to Receive Payment in Settlement With Grande |first1=John |last1=Duce |first2=Andrea |last2=Tan |date=5 October 2009 |url-status=dead |archive-url=https://web.archive.org/web/20140222154521/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWP18uiUC6dQ |archive-date=22 February 2014 |df=dmy }}</ref><ref>{{cite news|last1=Rovnick|first1=Naomi|title=Akai saga ends with 'US$100m payout'|url=http://www.scmp.com/article/694606/akai-saga-ends-us100m-payout|access-date=18 December 2016|work=The South China Morning Post|date=6 October 2009}}</ref> Police raided the Hong Kong office and arrested an EY partner who had been an audit manager on the Akai account from December 1997, although audit documents had been doctored dating back to 1994.<ref name="SCMP20090930" /> Akai was said to be the firm's largest client for most of the 1990s from Hong Kong.<ref>{{cite news|last1=Rovnick|first1=Naomi|title=Hard work pays off for 'vicious' Akai liquidator|url=http://www.scmp.com/article/694648/hard-work-pays-vicious-akai-liquidator|access-date=18 December 2016|work=The South China Morning Post|date=6 October 2009}}</ref>
The EY partner for the Akai account between 1991 and 1999, [[David Sun Tak-kei]], faced no charges and went on to become co-managing partner for EY China.<ref name="SCMP20090930" /> A few months later EY settled a similar claim of up to HK$300m from the liquidators of Moulin Global Eyecare, an audit client of the Hong Kong affiliate between 2002 and 2004.<ref name="SCMP20100127" /> The liquidators described the Moulin accounts as a "morass of [[wikt:dodginess|dodginess]]".<ref name="SCMP20100127" />

The [[Valukas Report]] issued in 2010<ref>[http://dealbook.blogs.nytimes.com/2010/03/11/lehman-directors-did-not-breach-duties-examiner-finds/#reports "Lehman Directors Did Not Breach Duties Examiner Finds"]. ''[[DealBook]]'' (blog of ''[[The New York Times]]''). 11 March 2010. Retrieved 9 July 2011.</ref> charged that [[Lehman Brothers]] engaged in a practice known as [[repo 105]] and that EY, Lehman's auditor, was aware of it. EY was accused of professional [[malpractice]] regarding the lack of disclosure of Lehman's repo 105 practice in Lehman's public filings.<ref name=Fraternite>{{cite web|title=Liberté, Egalité, Fraternité: Big Lehman Brothers Troubles For Ernst & Young (Mar 15, 2010)|url=http://retheauditors.com/2010/03/15/liberte-egalite-fraternite-lehman-brothers-troubles-for-ernst-young-threaten-the-big-4-fraternity/|website=re:_TheAuditors.com|access-date=18 December 2016}}</ref> New York prosecutors announced in 2010<ref>[http://www.ag.ny.gov/press-release/attorney-general-cuomo-sues-ernst-young-assisting-lehman-brothers-financial-fraud "Attorney General Cuomo Sues Ernst & Young for Assisting Lehman Brothers in Financial Fraud"] {{Webarchive|url=https://web.archive.org/web/20140305132730/http://www.ag.ny.gov/press-release/attorney-general-cuomo-sues-ernst-young-assisting-lehman-brothers-financial-fraud |date=5 March 2014 }}. [[New York Attorney General]]. 21 December 2010.</ref> that they have sued the firm. David Goldfarb, a Lehman CFO who concocted the repo 105 balance sheet window dressing technique was a former senior partner of EY.<ref name=Fraternite/> EY said that its last audit of Lehman Brothers was for the fiscal year ending 30 November 2007 and that Lehman's financial statements were fairly presented in accordance with [[Generally Accepted Accounting Principles]].<ref>[https://www.cbsnews.com/news/lehman-cooked-books-before-collapse-report-finds/ "Lehman Cooked Books before Collapse, Report Finds"]. [[CBS News]]. 12 March 2010. Retrieved 9 July 2011.</ref><ref>[http://dealbook.blogs.nytimes.com/2010/03/11/lehman-directors-did-not-breach-duties-examiner-finds/ Court-Appointed Lehman Examiner Unveils Report]. ''[[DealBook]]'' (blog of ''[[The New York Times]]''). 11 March 2010. Retrieved 9 July 2011.</ref><ref>[http://www.accountancyage.com/accountancyage/news/2259670/y-face-questions-lehman-audit "Lehman Smoking Gun Leaves E&Y Facing Questions"] {{webarchive |url=https://web.archive.org/web/20100502185054/http://www.accountancyage.com/accountancyage/news/2259670/y-face-questions-lehman-audit |date=2 May 2010 }}. ''[[Accountancy Age]]''. Retrieved 9 July 2011.</ref> In March 2015, EY settled Lehman-related lawsuits with municipalities in New Jersey and California.<ref>{{cite web|url=https://www.wsj.com/articles/ernst-young-settles-lehman-suits-with-new-jersey-california-municipalities-1426288420|title=Ernst & Young Settles Lehman Suits With New Jersey, California Municipalities|author=Patrick Fitzgerald|date=13 March 2015|work=WSJ|access-date=6 April 2015}}</ref>

In 2014, tax arrangements negotiated by EY for [[The Walt Disney Company]], [[Koch Industries]], [[Skype]], and other [[multinational corporation]]s became public in the so-called ''[[Luxembourg Leaks]]''. The disclosure of these and other tax arrangements led to controversial discussions about [[tax avoidance]].<ref>{{cite news|newspaper=The Guardian|url=https://www.theguardian.com/business/2014/dec/09/-sp-luxembourg-tax-files-how-junckers-duchy-accommodated-skype-and-the-koch-empire|title=Luxembourg tax files: how Juncker's duchy accommodated Skype and the Koch empire|date=9 December 2014|access-date=17 December 2014}}</ref><ref>{{cite news|newspaper=The New York Times |url=https://www.nytimes.com/2014/12/11/business/disney-and-koch-industries-had-luxembourg-tax-deals-journalists-group-says.html?_r=0|title=Disney and Koch Industries Had Luxembourg Tax Deals, Journalists' Group Says|date=10 December 2014|access-date=17 December 2014}}</ref><ref>{{cite news|newspaper=Irish Times|url=http://www.irishtimes.com/business/economy/koch-industries-implicated-in-luxembourg-leaks-1.2031660|title=Koch Industries implicated in Luxembourg leaks|date=10 December 2014|access-date=17 December 2014}}</ref>

In 2015, EY's member firm in Japan, Ernst & Young ShinNihon, was fined {{JPY|2.1 billion}} ({{USD|17.4 million}}) for failing to spot irregularities since 2008 while auditing its client [[Toshiba]], which was Japan's worst accounting scandal in years. The firm was also suspended from taking up new business for three months. An official from Japan's [[Financial Services Agency]] (FSA) described that "there was a grave breach of duty". The firm's CEO and chairman, Koichi Hanabusa stepped down the following month to take responsibility and monthly salaries for 19 employees were cut from 20 per cent to 50 per cent.<ref name=ReutersToshiba>{{cite news|last1=Uranaka|first1=Taiga|last2=Wada|first2=Takahiko|title=Japan fines Ernst & Young affiliate $17.4 million over Toshiba audit|url=https://www.reuters.com/article/us-toshiba-accounting-ernst-idUSKBN0U505S20151222|access-date=29 December 2016|work=Reuters|date=22 December 2015}}</ref><ref name=FTShinNihon>{{cite news|last1=Inagaki|first1=Kana|title=EY's Japanese unit reprimanded by regulator over Toshiba audits|url=https://www.ft.com/content/e6357710-a89a-11e5-955c-1e1d6de94879 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/e6357710-a89a-11e5-955c-1e1d6de94879 |archive-date=10 December 2022|access-date=29 December 2016|work=The Financial Times|date=22 December 2015|url-access=subscription}}</ref> In an unusual move, the FSA publicly named seven accountants involved in the audit who were accused of failing to exercise due caution and signing off on false financial documents.<ref name=FTShinNihon/> The FSA also said the "firm’s operations were deeply improper".<ref name=FTShinNihon/> ShinNihon, at the time, was Japan's biggest accounting firm, with 3,500 certified accountants and 4,000 clients.<ref name=ReutersToshiba/> ShinNihon audited about 960 listed companies in Japan, the most among the [[Big Four accounting firms|Big Four]], as reported in 2015.<ref name=NikkeiEYSN>{{cite news|title=Top accounting firms eyed to replace auditor|url=http://asia.nikkei.com/Business/Companies/Top-accounting-firms-eyed-to-replace-auditor|access-date=6 May 2017|work=Nikkei Asian Review|date=12 December 2015}}</ref> ShinNihon had audited Toshiba for over 60 years and the firm had around 70 staff serving Toshiba before the accounting scandal broke.<ref name=NikkeiEYSN/>

In 2017, Ernst & Young Baltic, member of the EY network, was accused of using the emission assumptions of highly polluting EURO II trucks (manufactured before 2001) to falsely increase the socio-economic benefits of the new railway for the period 2026–2055 by 3 billion euros in the [[Rail Baltica]] Cost-Benefit Analysis. The total mistakes amounted to more than 4 billion euros and constituted 20% of the total socio-economic benefit of the Rail Baltica.<ref>{{cite book |date=2018 |title=Major mistakes in Rail Baltica Cost-Benefit Analysis made by Ernst & Young Baltic |isbn=978-1985198630 |url=http://avalikultrailbalticust.ee/PDF/ARB_MMistakesRB_CBA_by_EY.pdf |last1=Humal |first1=Priit |last2=Lambot |first2=Karli |last3=Paul |first3=Illimar |publisher=CreateSpace Independent Publishing Platform |archive-url=https://web.archive.org/web/20180128041756/http://avalikultrailbalticust.ee/PDF/ARB_MMistakesRB_CBA_by_EY.pdf |archive-date=2018-01-28 |url-status=dead }}</ref> Correction of the mistakes made the project unfeasible. EY has refused to provide any comments to the media regarding the public accusations.<ref>{{Cite web |url=http://jv.err.ee/arhiiv/2017-000010-0918_0001_XHD_AKTUAALNE-KAAMERA.mp4#t=820 |title=Estonian Public Broadcasting News 18 September 2017 |access-date=12 March 2018 |archive-date=13 March 2018 |archive-url=https://web.archive.org/web/20180313093908/http://jv.err.ee/arhiiv/2017-000010-0918_0001_XHD_AKTUAALNE-KAAMERA.mp4#t=820 |url-status=dead }}</ref>