EY ordered to pay $10m to Dubai whistleblower | Financial Times:
Accountancy firm EY has been ordered to pay $10.8m in compensation to a former partner who blew the whistle on a client in Dubai suspected of laundering money and smuggling gold.
In an excoriating High Court ruling, Mr Justice Kerr awarded the payout to Amjad Rihan, who previously worked as an auditor for EY in Dubai. The ruling found that the accounting firm had breached professional duties in its handling of a 2013 audit of Dubai-based Kaloti Jewellery International.
Mr Rihan sued four EY entities, including its global and European businesses, in the English courts claiming that he had been forced out of the firm after he identified alleged money laundering by Kaloti. He said that EY suppressed his concerns that gold bullion had been coated in silver so the company could dodge export restrictions.
Mr Rihan also alleged that EY breached its professional duties of integrity and objectivity by colluding with Kaloti and the Dubai regulator to ensure that concerns raised in the audit were not published or reported to the authorities. He claimed that he was later forced to flee Dubai.
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