E&Y to pay $8.5 m in fine to SEC

The settlement of US$8.5 million is one of the highest to be paid by an accounting firm, the Securities and Exchange Commission (SEC) has said.

The regulator has charged E&Y and six of its current and former partners for their roles relating to the accounting fraud at Bally Total Fitness Holding Corporation.

“E&Y, which was the independent auditor of the Chicago-based operator of fitness centres, has agreed to pay USD 8.5 million to settle the SEC’s charges,” the regulator said in a statement on Thursday.

Each of the audit firm’s partners, who have been charged, has settled the charges against them.