Ernst & Young Auditors Accused in Investment Case

The Securities and Exchange Commission has instituted public administrative proceedings against two former Ernst & Young auditors who failed to uncover the misappropriation of client funds by an investment advisor they were auditing.

The proceedings were instituted against two CPAs: Gerard A.M. Oprins, 50, who had been a partner in Ernst & Young’s financial services practices group since 1995; and Wendy McNeely, 33, a former audit manager in E&Y’s financial services group who now works for another firm.

The case involves the firm’s audits of the 2004 financial statements of AA Capital Partners and its affiliated AA Capital Fund. The Chicago-based investment advisory firm managed more than $194 million for six union pension funds...

WebCPA: Ernst & Young Auditors Accused in Investment Case