Tuesday, August 19, 2008

Toothless SEC-7

"Ernst & Young LLP [E&Y] agreed to pay $2.8 million to settle [SEC] allegations that it compromised its independence by engaging in separate business dealings with a director of three of its client companies. ... [E&Y] settled the SEC's administrative proceedings without admitting or denying the allegations. ... By entering into an independence-impairing business relationship with [Marc] Thompson, [E&Y] clearly violated the rules,' said Scott Friestad, co-deputy director of enforcement at the SEC's Washington office", my emphasis, WSJ, 7 August 2008.

Another SEC enforcement triumph. $2.8 million for E&Y and $8.4 million for Jett, my 12 September 2007 post. What a country.

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