In Japan, it’s not unprecedented for the auditors to make everyone feel comfortable and sometimes be in on the deal…
U.S. investment bank Lehman Brothers was defrauded of some $353.1 million after it was caught in a scam in Japan, a source familiar with the situation told Reuters on Saturday, and trading house Marubeni said some of its staff were involved.
Goldman Sachs was also caught in the scam, daily Asahi Shimbun said on Saturday, citing sources familiar with the issue. The full scale of the fraud was not immediately known.
The Nihon Keizai Shimbun reported on Saturday that senior officials at medical consulting firm Asclepius Ltd, a wholly owned unit of LTT Bio-Pharma Co sought to raise funds from investors for the purchase of hospital equipment. The newspaper said the fraud involved fake documents from Japan’s fifth-largest trading firm Marubeni Corp.
External auditor for Lehman Brothers: Ernst and Young.
Interestingly Lehman Brothers features its Japanese operations on its website. For those of you who read Japanese, here is a link to that site.
Marubeni”s auditor is Ernst & Young Shin Nihon.
I have daily readers from Shin Nihon…
A firm called NIF Ventures backed the IPO of LTT- BioPharma in late 2004. The investment bank is a subsidiary of Daiwa Securities and its subsidiary Sumitomo Mitsui Banking Corporation. They are audited by KPMG.