US prosecutors are poised to file civil fraud charges against Ernst & Young for its alleged role in the collapse of Lehman Brothers, saying the accounting firm stood by while the investment bank misled investors about its financial health, according to a report in the media today.
Attributing to people familiar with the matter, The Wall Street Journal reported that New York prosecutors are poised to file civil fraud charges against Ernst & Young (E&Y) for its alleged role in the collapse of Lehman Brothers.
The report noted that State Attorney General Andrew Cuomo — who was recently elected as the Governor of the state of New York, but will only assume office on January 1, 2011 — is close to filing the suit, which would mark the first time a major accounting firm is being targetted for its role in the financial crisis.
