Ernst & Young agrees to C$8 mln settlement in Sino-Forest audit

Tue Sep 30, 2014 11:13am EDT
 
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TORONTO, Sept 30 (Reuters) - Accounting firm Ernst & Young LLP agreed on Tuesday to an C$8 million ($7.2 million) voluntary payment with Canada's biggest securities regulator over its audits of Sino-Forest Corp and another China-focused company.

Ernst & Young, which has already paid C$119 million to settle the civil lawsuits, did not admit to any wrongdoing in the no-contest settlement. All parties have agreed to the deal, which was approved by the Ontario Securities Commission.

Sino-Forest had been listed on the Toronto Stock Exchange and at one point was valued at more than C$6 billion ($5.47 billion). But after a short-seller in 2011 alleged the company had exaggerated its assets, its shares tanked and were later delisted.

The settlement related to audits of the insolvent forestry company and clothing and footwear company Zungui Haixi Corp. (U.S. $1 = 1.1169 Canadian dollar) (Reporting by Alastair Sharp, writing by Solarina Ho, editing by G Crosse)