The Hong Kong offices of accounting giant Ernst & Young were raided by police as part of a fraud investigation linked to the city’s biggest corporate collapse, local media said Wednesday.The search, which occurred Tuesday, came after Ernst & Young was accused in court earlier this month of falsifying documents to shield itself from a negligence claim brought by the liquidators of electronics company Akai Holdings, the South China Morning Post reported.
The lawsuit ended last week with an out-of-court settlement, with Ernst & Young paying the liquidators, Borrelli Walsh, hundreds of millions of Hong Kong dollars, according to the Post. Police only confirmed the Commercial Crime Bureau of the Hong Kong Police Force searched offices of an accounting firm Tuesday and took away some documents in connection to a “suspected forgery” case, spokeswoman Candice Siu said. She did not identify the firm.
Siu said a 41-year-old man surnamed Dang was also arrested.The Post identified the man as Edmund Dang, one of Ernst & Young’s partners in Hong Kong.Ernst & Young’s spokeswoman in Hong Kong did not immediately respond to calls seeking comment.Akai was liquidated in August 2000 and left creditors with debts of more than $1 billion, making it the city’s biggest corporate liquidation.
It appears that the only work of the Big 4 is to perpetuate frauds or help in the fraud. This is the same story from USA to India to Hongkong.
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