SEC Fines E&Y Member Firm For Role In $3B Homes Scam
Law360 (December 17, 2020, 10:07 PM EST) -- The U.S. Securities and Exchange Commission struck a $1.5 million deal with a so-called member firm of Ernst & Young Global on Thursday for its role as the auditor of a Mexico-based homebuilder accused of multibillion-dollar accounting fraud.
Mexico-based accounting firm Mancera S.C. agreed to pay just over $1 million in disgorgement, including prejudgment interest, and $500,000 in civil penalties for audit violations and "improper professional conduct" in connection with its fiscal year 2010, 2011 and 2012 audits of Desarrolladora Homex SAB de CV, the SEC announced.
Throughout those three years, Homex engaged in multibillion-dollar financial fraud by overstating the number of homes sold...
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