FRC drops Lehman case against Ernst & Young

The Financial Reporting Council (FRC) has abandoned the case against Ernst & Young over its role as auditor of collapsed US investment bank Lehman Brothers.

Despite various lawsuits and regulatory probesGareth Rees QC, FRC’s executive counsel, decided that “no action should be taken against E&Y or any individuals in connection with their conduct in the case.”

A spokesman for E&Y responded to the decision, saying it “confirms our belief that the quality of our audit work met with the appropriate professional standards”

The long-running case centred on the discovery by administrators PwC of a shortfall in the pool of money held on trust for clients, which should have been segregated and safeguarded in accordance with the rules set out in CASS.


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nogammonsinanundoubledgame's picture

There is I think a not subtle distinction between ...

nogammonsinanun... | | Permalink

... "a decision not to proceed" (as described in the body of the narrative) on the one hand and on the other "the respondent being cleared" (as the header suggests).

With kind regards

Clint Westwood

[EDIT] subject header has since been edited rendering this post otiose.

But equally

The Black Knight | | Permalink

But... equally if there is no case to answer then it should not leave a stain on good character.....Wanting to pursue and being able to find anything to pursue are also important?

George Gretton's picture

What, Ernst and Young again, signing off dud accounts?    1 thanks

George Gretton | | Permalink

Hello all; I quote from above:

"At the start of the investigation it appeared Lehman had failed to comply with CASS rules and that E&Y had signed off their report, confirming the bank was in compliance."

Were E & Y in Gung-Ho mode or in Bung-Ho mode?

There's another complaint floating around, that incidentally involves Ernst & Young.

Ernst & Young's passing involvement in a £4,000,000 money laundering scandal centres around their signing off the 2001 "Accounts" for a "Charity" called "The Institute of Brewing and Distilling".

This case (Crime Reference 1924 340 / 12) is stuck with the "short-of-resources" Westminster CID at Charing Cross, in the "Safe" hands of a DS Nathan Tozer."

"We have far too much fraud to investigate, Guv, We have far more obvious and simple cases to prioritise." Busy? Gung-Ho?.......

It's now, at last, at least partly on the radar of my Local MP, Sarah Teather, although it may be less obviously nestling around within the "safer" issues that I have raised to do with the absurd, and deteriorating, situation at Companies House. She has written to Vince Cable about that, and we await his response.

She seemed happier with the wider aspects, such as problems at Companies House and at The BIS ("Company Investigation Team" and "Insolvency (Missed the Boat, Stable Door etc) Service" but there are interesting other specifics: the IBD's current "Auditors" being very rude to me, and "my" Institute, the ICAEW, raising a manufactured complaint about me, trying to distract me, rattle my cage.

It did rattle my cage, but that only resulted in my accelerating involving The Metropolitan Police in the case; they, apparently, "DO" Money Laundering.

The latest twist involves mortgaging the "Charity's" Mayfair Office, which is valued at £3.8 m. Even I didn't forsee that! Breathtaking! Although the 2011 accounts are so dire as to call for its sale, to compensate for millions in "losses"! Losses overseas, as in unreconciled bank accounts over many years, now openly "admitted" to, Lance. What were the current auditors doing, pray, signing off all those accounts. READ THOSE 2011 ACCOUNTS". Cut straight to page 11, and then start again from the beginning. What Poetry! What Fiction. I hear that some bookshop has moved Armstrong's stuff to "Fiction" Good on them!

The guys at the Royal Bank of Scotland, Curzon St, are going to need the smoothest taking skills of how they set up that overdraft facility in the light of recent sets of accounts. What was that £750m scam recently, involving a couple of banks around there? That was one very good result, The Met!

If you want some "interesting" reading, start off with The Institute of Brewing and Distilling's 2010, and then, especially, 2011 accounts. What a HOOT!

Then re-start from 2000 and, especially (£4,000,000 "donation" in £1.5m income "Charity") look at the 2001 accounts. E & Y signed them off clean, 9 months late, and resigning.

Don't rely on my views; go and look for yourself. I have about 160 documents now. It started off with the "Company Secretary and Executive Director" saying some awfully wacky things to me over the phone, and then as soon as I started downloading from Companies House....

Bogus Directors, bulk appointments and resignations of bogus directors, geniune "Professor of Brewing" directors giving false addresses, and all sorts of Statutory Organisations not giving a pile of manure. 

Please would all or some of these guys bring an action against me for defamation? Then we will go through all of my material in an Open Court of Law!

Yours, in a bit of a frustrated paddy today, George

Friday 1st February 2013, 14:55

Can You? / accountancy web show accounts?

The Black Knight | | Permalink

Can You? / accountancy web show accounts?

So we can all have a butchers?

George Gretton's picture

Help yourselves to those accounts

George Gretton | | Permalink

I've "bunged" in a link below to the relevant directory in my Box setup. Let me know if it doesn't give you access to the IBD 2000 to 2011 Accounts.

Once I've posted this I'll check that the link works properly.

I would have been happier for somebody independent of me to do a set of downloads, to verify that I haven't been fiddling around with them (Uncle Ernie), but this access may give somebody a motive to download them.

Only £1.00 a go! I have been interacting with a very sympathetic Technical bod at Companies House to continue to enhance the process, particularly when you've got lots of files.

Have fun! Make sure that you are safely sitting down first! Have a drink and your vomit bowl to hand!



have not checked yet

The Black Knight | | Permalink

have not checked yet but may be available on charity commissioners website for free?

.....will have a read!

George Gretton's picture

Read on, BK

George Gretton | | Permalink

Hello Black Knight,

we may be kindred spirits: one of my aliases is "Nemesis". I'm a very feminine chap, really.

I'm happy with the CH download service, so I'll stick with it. I often investigate non-Charity Companies. I'm often disappointed with what I find. I'm often embarrassed to be a (Qualified) part of the Accounting profession.

I've has some very weird telephone conversations about the IBD with all sorts of Statutory organisations; nobody want to know.

I've also offered this story to Accounting Web, but they were too coy to run with it.

I'll be interested to hear your feedback. Somebody just downloaded the 2011 accounts - perhaps you.

Yours, George

There are

The Black Knight | | Permalink

There are some shocking reports filed at companies house, some of which are just the filing of evidence of criminal offences under the companies acts and or the taxes acts.

There are many fictitious directors and company secretaries or at least using pen names...which is quite amazing in this day and age.

You are quite right Companies house and HMRC do not they have always had sufficient willing contributors of tax to satisfy their wasteful requirements.

Maybe someone will soon take the deficit seriously and wake up to the gold mine available by looking at the accounts. Although I think it is because they do not understand the accounts combined with general apathy which leads to the problem.

Either that or there is corruption within....perhaps there is another news of the world type story to come out. After all if you can make payments to police officers then why not HMRC?




George Gretton's picture

Was that HMRC you were referring to?

George Gretton | | Permalink

Hello again BK,

I forgot to mention HMRC and their Fraud Reporting, although this one is also pending with my M.P.

I recently did some voluntary work at a Chaotic Charity called the Helios Foundation, which may or may not be as worthy as its name and prima facie activity (Holistic Support for AIDS / HIV Sufferers).

It was chaotic; the only accounting mess resolution that I have ever just walked away from. And I am a very strong technical accountant, especially forensic, all among other IS things

I also did some accounting work on another Trust there where the local head honcho, Greg, was sole director.

I asked him about a clearly fictitious entry in the previous year's accounts, only for £1,000, although it put those accounts into a loss position, and the Trust is not a Charity.

He smiled at me to my face, knowing that I was an ACA, and said: "Well, I didn't want to pay any Corporation Tax, did I?"

I reported him to HMRC on their online system, but one never hears anything afterwards anyway. 

I also reported him to the Big Lottery Fraud Team, where I thought that I got some interest, in connection with a £320,000 grant to Helios. I thought I heard an "Audit" being promised.

But Helios is still there, with a "Big Lottery" symbol on their home web page. So he carries on urinating on people. Perhaps I should pay him a visit and tell him what I did, so that he at least knows. Would you like to come too? It's just near St Pancras Station in North London. I have another accountant friend (now retired) with a wonderful sense of humour who might like to come along. I'll not poke any fun at the IBD, however, by calling in - there are some really nasty people involved, apparently psychopathic, and I'm using the term technicaly.


How did you find the IBD 2011 Accounts? Have you ever seen anything as disgraceful as page 11? Yes, the clean audit report, with no reference to previous accounts being way out.

And one of the string of possibly honest but absolutely out of depth accountants that has had the misfortune to work there was vilified as if responsible!

What a cheek; you are the Chief Villain Engineer, Kenneth Joseph Fairbrother, County Councillor in South Derbyshire. You really need taking apart for defamation, of the written sort! You have been totally in control as "Treasurer" since 1999. And you are not an accountant, and this is  £7,000,000 net asset "Charity" (or at least it was).

I look forward, BK, to your considered observations about the accounts. If you want, I can make all of the 160 odd documents in the full IBD directory available to you. Those emails, those concerned letters to "Directors"; 14 of them, with not one single response. Now, of course, all the "Directors" have that scandalous "As Registered Office" Service address, so that they can't be validated or contacted. Yuk! And that is a recent retrograde step, as I will point out to Vince.

Please be assured that this is just a passing interest of mine, one of a few; I do lots of constructive (vs de-constructive) work as well.

Yours, George

Off topic

dsefton | | Permalink
George Gretton's picture

P.S. RE "Tipping off"

George Gretton | | Permalink

When the ICAEW first started hassling me, I had a telephone call from a "concerned" ICAEW member of staff "advising" me that my noisy activity might be considered to be "tipping off", that foul criminal activity by which villains are advised about the incipient arrival of the Long Arm of The Law to investigate their dark deeds.

The powers that be at the IBD are just laughing at me; they have know that I''ve been after them for 6 moths or more already. And the "Charity" will still be bleeding like a stuck pig, siphoning overseas the overdraft "secured" on the main property.

If and as and when king Kenny files out, for good, then I say good riddance. Simon will be the fall guy, and get imprisoned. But as at today there mat still be some overdraft facility left to send overseas (it's an "International" Charity), and nobody is stopping that pre-emptively.

Presumably it will ultimately be an "Insolvency" job; then the total laundered or stolen will be up to £7,500,000.

Phew, that's all got a bit of angst off my chest. It's good to let off steam from time to time.

Yours, going for a cuppa, George

I have just received my copy    1 thanks

Supertorben | | Permalink

I have just received my copy of Economia, issue 13, in which I note that Nick Land proudly states that he is a non-executive of the FRC. He also chairs the Audit and Assurance Council, the successor to the APB. Of course, he needs no introduction, having been executive chairman of Ernst & Young for 11 years.

George Gretton's picture

"Off topic, and "my copy"

George Gretton | | Permalink

Hello DSefton; you are at liberty to disconnect from this thread. Others, perhaps with more open minds, find it relevant in a profound sense, to do with honesty vs dishonesty.

Hello SuperTorBen,

Isn't it so amazingly blatant!

I've got some mugshots of the current IBD "accountants / auditors", and they remind me so much of Trick Dicky! And as for Kenny's image; head for the bog, quick, before you have an accident.

I've had a big argument recently about how much you can tell from a photo; I say lots - look for the permanent wrinkles and lines, formed either by smiles or by scowls. I had a good point in the end in that sometimes-lively set of exchanges, about Starbucks etc, the Uncle Ernies of this day and age. That LinkedIn thread ultimately got closed off. Free Speech?

If and as and when the IBD case gets laid into legally, it will lead, on a firm basis, to "my" ICAEW. 

One of my most delightful fantasies is that of being present when my "Case Manager" is interviewed under caution, along with another "Complaints" person who first formally hassled me, to soften me up.

Yours, George

George Gretton's picture

I took my eye off the ball.......

George Gretton | | Permalink

Sorry Guys and Girls,

I see that quite a few people are looking at these IBD accounts. I hope that they don't give you all nightmares

In response to various observations, I actually did a preliminary scan of the IBD 1999 to 2009 accounts, straight through in the context of what I have already picked up, like the £4,000,000 "Donation" receipt in 2001, which I had somehow located in isolation, Tommy the Pinball Wizard.

There are a lot of patterns, and I'll be back tomorrow.

But I must confess to my main sins as to what I missed before.

In addition to the 2001 £4,000,000, that E & Y refused to qualify the accounts for, there's:

2003     £2,093,553

2006      £425,000

plus ?     £207,000

2008    £308,000.

So on the money laundering account alone, before the property scam, there's £7,000,000 rather than the £4,000,000 that I originally spotted.

The "Auditors and Accountants" following E & Y are Chantrey Vellacott, who produced the 2002 accounts just 6 weeks after E & Y had "Approved" the 2001 accounts, after a 9 month "negotiation / bung" delay. What clever chaps,

They wrote me a very rude letter! I'll add a link to it tomorrow, or perhaps to my whole IBD directory, with about 160 items in it. You should see the "Directors Appointments and Resignations" workbook!

If you hear of a North West London Accountant having a "mishap", then check out whether its me, and let the Met know if it is. They will be able to get access to all my files.

Please, if you are moved, post some detailed responses to what you look at. I've had some wonderful observations even from the most conservative people. But let's get these illegitimate so-and-so's; get them nicked!

If you are wondering about my will to live, then yes, it is not as strong as that of many. There was a wonderful episode of "New Tricks" when Jack did some apparently brave things, when in fact he just didn't care about his own well-being that much any more. I know the feeling.

Back tomorrow, with plenty of names and details. 

Yours, George


George Gretton's picture

On Looking at Sets of Accounts, and further issues

George Gretton | | Permalink


Hello All,

The reporting in the Box Sync facility that I use does not, as far as I can see, differentiate between previews on the Box site and full downloads, so I can’t tell who has done what.

Also, it can’t tell me by name who previewed or downloaded a file – unless the downloader is a fellow Box member all that they record is the IP address of the person concerned.

2 people have “looked at” (either way as above) the 1999 accounts, 3 have looked at the 2010 accounts, and 3 at the 2011 accounts.

The 1999 accounts seem totally innocuous to me; Fairbrother has arrived in that Charity environment at that stage but had not taken it over as Chief Engineer and Criminal Mastermind.

I hate to think where this £7,000,000 has come from in the first place. That’s an awful lot of bent dosh, and the launderers may be very, very unpleasant and psychopathic characters. Codd knows what sorts of activities are involved. Let’s hope that we find out, so that they are appropriately attended to and shut down, with suitable legal retribution. Let's also hope that I survive the process.

The most significant accounts are for 2001 (£4,000,000 arrives), 2003 (£2,000,000 arrives), 2010 (things beginning to come apart at the seams) and 2011 (Armageddon has now come to stay, full time, with all the associated transparent disintegration). So please focus at them, at least initially.


I have decided to give you all access to my whole IBD directory. The link is:

Note that there are a whole load of directories before the files in the main directory itself. Give yourself a fright by looking at the mugshot of Kenneth Fairbrother, and chuckle at the snap of the current Oily Rag, Simon Jackson, who was paid, at least though the payroll, between £80k and £90k in the 2011 year.

You may not chuckle at the appearance of Geoff Lane and Michael Cannon, more or less shady “characters” and “Consultants” at Chantrey Vellacott. If they darken my door, I’ll be dialling 999 straight away.

Look at the “Pink Handbags at Dawn” stuff, Chantrey Vellacott’s billet doux to me before they got me hassled, unsuccessfully, by my dear old Institute, the ICAEW, of which, of course, they are also “members” (in which meaning of the word, Lugwig, organisational or anatomical?). Implications for the ICAEW…………………………..?

You will see folders around for two “Professors of Brewing” (sic: yes, that’s what they actually are, with all the drunken party and disorganisation implications) and for some very big organisations in the Drinks industry who seem very much to have been turning a blind eye, at senior levels (including the Company Secretary at SAB Miller) to the possibility of problems at the dear ol’ IBD, such a wonderful “Charitable” organisation, with such nice chaps like Simple Simon “running” the show! What wonderful dinners and parties they put on!

Have a look at the content of the “Emails and letters to Simon Jackson and Directors” directory, if you want a good belly laugh! My style of writing can sometimes be a bit wacky, but it also provokes (intentionally) the most wonderfully pig-stupid (thank you Michael Moore, for your eloquent language) responses.

Have a really good look at the “IBD Director Histories…” workbook.

Note that some of the 160 odd items around are in the form of the insecure Microsoft Word Documents and Excel Workbooks; I can tell you that as I uploaded them they are clean, but as and when you download them, please check them out with your own security tools. None of the Excel workbooks contain any VBA code, so your systems should not freak out about them on that basis.

There’s more email stuff that I haven’t converted to pdf format, but that’s just icing on the cake – there’s more than enough material in the directory tree at present to form a balanced opinion as to what is actually going on.

My goal in all of this is to get the IBD (and Chantrey Vellacott, and the ICAEW) properly looked into by Metropolitan and Thames Valley Police Detectives with their associated powers. The case is with the Met Police, but not looked into as yet, although I will notify them that my estimate of the laundering side has gone up from £4m to £7m.

I thought that I might have got some leverage at Coors, in the form of a HUGE organisation that must have contributed considerably to the IBD’s coffers, but my contact there, Scott Wilson, has not run with the issue. Perhaps they are feeling embarrassed, and hope that the messy issue will go away.

Scott has sat next to Simple Simon at an IBD Dinner, and thought that Simon might indeed be a bit Simple, although it had not previously occurred to him that he might also be a straight as a corkscrew as well as very well paid, even on a visible basis.

If anybody knows of somebody of honesty and integrity high up somewhere, that has leverage and an interest in flushing out scum, then please draw that person’s attention to my IBD directory on Box.

I’ll be back later with some more of the interesting fruits of my analytical review of the 13 sets of accounts.

One of my most heavenly dreams (apart from being present when Felicity Hargreaves, my “Case Manager” at the ICAEW is interviewed under caution) is to be the person who goes into the IBD to strangle some meaning out of the bank records, starting from the raw receipts and payments level.

I would ignore totally the “accounting records”, such as they are, and just go from external bank records, reproduced by the “unfortunate” bank, sourcing receipts and tracing payments through the clearing bank system, even and especially overseas payments. Sigh!

Yours, George

FRC drops Lehman case against Ernst & Young

dsefton | | Permalink

The subject line above is the topic to be covered here. Who the hell cares about your case?

George Gretton's picture

One or two people, perhaps, that have any sense of values

George Gretton | | Permalink

One or two people, perhaps, that have any sense of values and of morality, as in what's right and what's wrong. 

You refer to hell, which, your behaviour suggests, is where you live.

I lived there, in a dreadful isolation, for 50 years. I hope that you will soon get out as well.

The link with Ernst & Young is that they were the first people to cave in in the face of Fairbrother, either out of intimidation or by being bribed; one cannot tell at a distance. The tone of the original article make it quite clear that the author smells a corrupt rat in the way that the case in mention was dropped. He clearly views the outcome as incoherent and implausible, Club Members looking after other Club Members.

But Ernst & Young definitely did cave in re the IBD, in my sincere view; I'd be happy to have a televised discussion with their Engagement Partner of the time if he wants to clear his own name and that of Ernst & Young.

Indeed if somebody would at last bring an action against me for defamation, which more and more people MUST do in the light of my observations, unless they simply accept my clear accusations that they are bent, then we can air all of this in that very public place which is a Court of Law. Anybody whose name comes up in this context will automatically have a "case" to answer, such is the blatancy of this scandal. Weak and bent people will be exposed; I have this profound loathing of two-facedness, based on events from long ago.

I'll soon finish my analytical review of the 13 sets of accounts, and place the resulting (poxy) Excel workbook in an available place; actually it's already there, but not yet complete.

Yesterday I went to see the film of "Les Miserables", which was immensely uplifting. The story of "24601" is a wonderful one, of a corageous and honest and sincere man who overcame great injustice to achieve what he truly believed in. We do exist, such people, in the real world that such films depict.

Back soon, O Pathetic Git, George

Now, that's more like it.

dsefton | | Permalink
George Gretton's picture

Hello DSefton, are you on board now?

George Gretton | | Permalink

Hello D,

I note with interest you encouraging observation.

I have just made an interesting contact with the £350,000,000 a year spending Medical Research Council, on account of the IBD's claims to have contributed over half a million pounds to their coffers. 

I'll be back; I dream of an organisation of the scale and stature of the Medial Research Council  taking exception to the IBD claiming to have funded them. DS Nathan Tozer may yet get a call, or perhaps his immediate boss, or that person's boss in the Met.

I previously thought that I might have wound up somebody in that tiny outfit the Coors Brewing Company to apply some pressure, but that one faded away, Scott Wilson, Head of Communications.

However, I can only wait and see; I may have the IBD all wrong - I only advance with an open mind, resolving uncertainties and laying genuine concerns to rest. But I do have a great set of BullManure detectors.

If I have slighted Fairbrother, Jackson et al unfairly, then I will take them out to dinner as my way of saying sorry. But you all can understand that I am sincere in my enquiries, and honest in the resolution of uncertainties. I'm motivated by my sense of right and wrong. my middle name is "Nemesis", that reflects the feminine aspects of me.

Yours, George

George Gretton's picture

IBD - 13 Year Comparative Anal-tical Review

George Gretton | | Permalink

Hello again all,

I've got to a stage in my comparative analytical review of 13 years of IBD Accounts, and the fruits of my labours can be found in my IBD Directory on Box:

They are in the "Accounting Web Thoughts" directory, and download, or at least preview, V03 of "The IDB - The Players and Theirs Positions on the Field of Play".

As I observe in one of my notes, there's some prima facie false accounting going on, even over and above what is in the accounts - there's clearly a payment accounting gap of a few millions - it does not otherwise make sense that they have run out of cash and have had to mortgage their £3.8m offices to run up an overdraft.

Here we are, ICAEW Firm Audited Accounts, which are not only meaningless but also obscene.

Options; get somebody involved with massive clout to kick bottom at the Met, or would one of the people whose reputation I am attacking so vigorously please bring an action against me for defamation, so that we can sort it all out publicly.

Anybody thinking of any physical assault route, please take on board that I am, in one side of me, a very, very nasty and indescribably angry man, with a huge streak of naked violence in me, that I can tap. I will make an Israel-inspired response to any hassle, as in go flat out.

Yours, George