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Former Ernst & Young Audit Partner Arrested for Obstruction Charges and Criminal Violations of Sarbanes-Oxley Act
9/25/2003
Thomas C. Trauger, a former Ernst & Young partner who allegedly altered and destroyed audit working papers, was arrested this morning by FBI agents on criminal charges for obstructing investigations by both the Office of the Comptroller of the Currency and the Securities and Exchange Commission. The arrest and charges were announced today by the U.S. Attorney's Office for the Northern District of California, the Federal Bureau of Investigation, and the Securities and Exchange Commission. This is one of the first cases of document destruction brought under the newly enacted Sarbanes-Oxley Act.
In addition, the Securities and Exchange Commission instituted two administrative proceedings, an unsettled proceeding against Mr. Trauger and Michael Mullen, former audit manager at E&Y, and a separate settled proceeding against Oliver Flanagan, former senior manager at E&Y.
