Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Monday, May 20, 2024 | Back issues
Courthouse News Service Courthouse News Service

Ernst & Young Settles With SEC for $8.5M

WASHINGTON (CN) - Ernst & Young will pay $8.5 million to settle SEC charges that six of its partners provided Bally Total Fitness with "false and misleading" audit reports. The SEC says that Ernst & Young "knew or should have known about Bally's fraudulent financial accounting and disclosures," and that all six men also agreed to settle.

The three current Ernst & Young partners charged in the complaint are Randy G. Fletchal, who is in charge of E&Y's national office; Mark V. Sever, its national director of area professional practice; and Kenneth W. Peterson, professional practice director of the Lake Michigan area.

The three former partners are Thomas D. Vogelsinger, Lake Michigan area managing partner until October 2003; William J. Carpenter, the engagement partner for the 2003 audit; and John M. Kiss, engagement partner for the 2001 and 2002 audits.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.