The Hong Kong police on Tuesday raided the offices of Ernst & Young LLP as part of an investigation into suspected forgery linked to bankrupt electronics maker Akai Holdings Ltd., reports The Wall Street Journal.
The global accounting, auditing and professional services firm last week settled a lawsuit by Borelli Walsh, Akai’s liquidator, over its auditing of Akai’s books in the late 1990. In a statement obtained by the Journal, Ernst & Young said it lent police “every assistance” when they visited the firm.
According to the Journal, the police searched the offices of Ernst & Young and seized a number of documents. It also arrested a 41-year-old man, identified only by his surname Dang, in connection with the case. The man has since been released on bail pending further investigation, and hasn't been charged, reports the Journal.
Last week, Ernst & Young suspended one of its Hong Kong-based partners following an internal investigation over the firm's role in Akai, which collapsed in 2000 under more than US$1 billion of debt. The Journal says that a person familiar with the case on Wednesday identified the partner as Edmund Dang.