Police extend Ernst & Young investigation

PUBLISHED : Sunday, 01 November, 2009, 12:00am
UPDATED : Sunday, 01 November, 2009, 12:00am

Police have extended an investigation into the forgery of evidence presented in court by the Hong Kong affiliate of global accounting giant Ernst & Young.

Bail for the Ernst & Young Hong Kong partner arrested in September has been extended. Police will question him again next month.

The firm, accused of tampering with and falsifying audit files related to the collapse of electronics conglomerate Akai Holdings in 2000, paid about US$200 million in September in an out-of-court settlement of a decade-old audit negligence suit filed by its bankrupt client's liquidator, Borrelli Walsh.

Ernst & Young Hong Kong partner Edmund Dang was suspended by the firm on the same day following an internal investigation of the Akai audit.

Dang, a junior manager on the Akai account, was arrested on September 29 on suspicion of forgery and released on bail for a month. The liquidators alleged during a High Court trial over the Akai case that Dang's handwriting was on many of the questionable documents.

A police spokeswoman said: 'The arrested person was allowed to extend his bail and report back in early December.'

She declined to identify the person, but confirmed that the investigation was continuing. No other arrests have been made.

On September 29, police seized documents from Ernst & Young and took documents from Borrelli Walsh and its solicitors, Lovells.