Ernst & Young - Mahony Partners

It’s impossible to read about the demise of MF Global and not think about Refco, the futures brokerage that collapsed in scandal in 2005 and whose remains were later bought by MF Global. Like Marley’s ghost, the weaknesses that played a part in Refco’s downfall returned to haunt MF Global. Refco’s problems came to light just a few months after it completed an initial public offering in August 2005 that valued the company at $3.5 billion. A short time later, the firm discovered that CEO Phillip Bennett had maintained control of a separate entity that wasn’t consolidated with Refco’s books and held $430 million in Refco debt. When Refco disclosed the debt in October 2005, just eight w... Read More

The hole is getting deeper for Olympus and its chairman, Tsuyoshi Kikukawa. And his outside auditor, Ernst & Young, might find itself alongside him. A day after denying allegations by its former CEO, Michael Woodford, that it paid advisory fees of $687 million on a $2 billion acquisition, the company reversed itself and acknowledged that Woodward’s figures were correct. Analysts have downgraded the shares, and Goldman Sachs suspended its rating over doubts about the company’s accounting, calling into question the accuracy of Olympus’s books over the past several years. It hasn’t helped that three different company officials are speaking on the matter - Chairman Kikukawa, Executive ... Read More

Tag: Ernst & Young

Refco’s ghost haunts MF Global

Olympus: Where were the auditors?