Auditors Blew It, Engineering Firm Says

     MIAMI (CN) – An engineering company claims an Ernst & Young predecessor wrote a fraudulent audit report and refuses to correct it. Fischer Engineering and Maintenance says needed the audit to show that its chief operating officer used company money to buy up all of the company’s stock.

     Fischer claims that Sycip, Gorres Velayo & Co., a Philippines company and former branch of Arthur Andersen, submitted a false audit report of and refuses to amend it, “despite their knowledge and possession of documentary evidences that would materially affect and contradict their previous audit findings.”
     Fischer claims its former COO Isaias Bongar “unlawfully seized all the company assets, worth millions of dollars, including all books, records, etc.,” and then “transferred all the company assets and employees to his own office … and declared himself as the 100 percent owner.”
     Bongar then shut down the company’s Manila office and “moved the company to his gated compound,” claiming “that he was the legitimate 100 percent owner” because “he fully paid for all the shares of [Fischer] stocks,” according to the complaint.
     But Fischer says Bongar used “monies belonging to the company and its joint venture … and not a cent came from [his own] pocket.”
     Fischer seeks damages for fraud, negligent representation, and breach of fiduciary duty. It is represented in Miami-Dade County Court by Santiago Cueto.
     Ernst & Young merged with many Andersen firms around the world in 2002, though not with those in the United States.

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