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Ernst and Young settles fraud dispute

Published on 18 Dec 2009 under category: legal

Ernst and Young has agreed to make a multibillion dollar settlement payment in connection with an alleged fraud.

The accountancy firm will pay $8.5 billion (£5.2 billion) to settle the charges put against it by US authorities.

These allegations relate to six current and five former workers failing to notice and report fraud crimes at Bally Total Fitness Corporation.

Ernst and Young also agreed to alter its policies in a bid to prevent a similar case occurring again in the future.

A statement from the firm said: "These settlements allow us and several of our partners to put this matter behind us and resolve issues that arose more than five years ago."

During the proceedings, Ernst and Young did not admit or deny the charges against it that it either knew or should have known about the fraud crimes taking place in Bally Total Fitness Corporation.

Elsewhere, Allen Stanford is to appear in court in January 2011 for the start of his fraud trial, it has been revealed this week.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.