Ernst & Young Sued for Allegedly Covering Up Bad Audits
A Florida businessman who merged his company with a bank that later collapsed claims that auditing failures and a subsequent cover-up by accounting giant Ernst & Young cost him hundreds of millions of dollars in damages. Alan Schein contends that he relied on E&Y audits that gave Illinois-based Superior Bank a clean bill of health for more than a decade when deciding in 1998 to merge his mortgage marketing company with the bank, whose assets were $420 million lower than reported.
