There were a lot of documents sealed by the Court to prevent outsiders from viewing what was taking place when EK went into BK. If EK had no monies for equity investors then those documents should have been open for stockholders to review.
The hiring of E & Y of Gov. Christie's brother Todd for the Sandy Storm Monitoring should have been a telling sign. The investigation into how the Sandy Funds were being used is on going.
This is another high profile case that just came up.
COURT REVIEVES NY CLAIMS TO ERNST & YOUNG FEES FROM LEHMAN AUDITS.
by Karen Freifeid Reuters February 20, 2014
A NY state appeals court on Thursday revived the NY Attorney General's claims for $150 million in fees that Ernst & Young earned from Lehman Brothers Holdings in the years leading up to the bank's collapse.
The state wants to recoup the fees as part of a lawsuit against E & Y over its auditing of Lehman Brothers. The 2010 lawsuit accuses the firm of assisting Lehman in accounting fraud.
In a unanimous opinion, the appeals court said that, when a claim is based on fraudulent activity, disgorgement of the fees is available as a remedy.
This is a very powerful charged levied on Ernst & Young. NY accuses the firm of assisting Lehman in accounting fraud.
I guess someone is very nervous of what is taking place in New Jersey with the Sandy monitoring.
Just some recollection after EK's BK.
When EK went into BK, the restructuring firm was not Alix Partners. Alix Partners replaced the firm after EK went into BK.
The Auditing/Accounting firm was for EK was PWC before BK and after BK.
The head of restructuring firm for Alix Partners came from E & Y.
When Alix Partners took over, they had AP fire their CFO who had been there for a while. Alix Partners claim that she didn't know enough about Bankruptcy. Alix Partners then installed one of their own as CFO.
If you can shed some light on how E & Y is monitoring the Sandy Funds, this might shed some light on how E & Y dealt with EK's Bankruptcy.
This came across the news today re Ernst & Young. Ernst & Young was hired after the Sandy Storm by Gov Christie to monitor how Sandy Funds were being used. E & Y then hired Gov Christie's Brother Todd. E & Y claims that Todd had no involvement with the Sandy funds but it seems very strange why E & Y would hire Gov. Christie's brother.
E & Y did a lot of critical valuations for EK. I think we should monitor how E & Y in handling the above very seriously.