Whistleblower Accuses EY of Enabling Organized Crime with Links to Gambling

A former partner at Ernst & Young (EY), by the name of Joe Howie, who spent 35 years in various roles at the firm, has alleged that EY knowingly delivered audit and compliance services to gambling clients with suspected ties to transnational organized crime, including Chinese mafia figures involved in US-listed casino companies. He also claimed the firm retaliated against him after he repeatedly raised internal concerns and sought to enforce compliance with professional and legal standards.

Whistleblower Files Lawsuit Against Ernst & Young 

In a whistleblower lawsuit filed in the Southern District of New York, Howie alleged that EY’s audit failures facilitated ongoing criminal activity, money laundering, and the dissemination of misleading information to investors. Howie is represented by the prominent New York employment law firm Wigdor LLP, known for securing jury awards in previous whistleblower cases and for representing a victim of Harvey Weinstein.

The complaint alleges that EY issued unqualified audit opinions for clients despite their purported connections to convicted criminals Alvin Chau and Levo Chan, who are junket operators who ran VIP gambling rooms linked to Triad syndicates. According to the whistleblower, EY’s internal risk assessments were either manipulated or left incomplete, and the firm ignored or suppressed recommendations to sever ties with high-risk clients. These clients included US and international gambling operators, some of which had been publicly flagged in open sources and due diligence reports as being under the influence of organized crime.

According to the complaint, EY’s shortcomings also affected multiple global clients across the Asia-Pacific, EMEIA, and the Americas, including US-listed entities. These failures allegedly involved inadequate identification and response to anti-money laundering (AML) risks, related-party transactions, and issues concerning management integrity. Howie asserted that EY either ignored or minimized links between these clients and known criminal figures, including casino junket operators convicted of large-scale fraud and money laundering in Macau.

Howie Says EY Retaliated When He Pointed Out Failings

Howie alleges that EY forced him out of the firm after 35 years of service (including 24 years as a partner) in retaliation for his whistleblowing activities. He claims he was removed from his roles, pressured into early retirement, and ultimately expelled from the partnership under punitive conditions.

According to the complaint, Howie repeatedly warned about serious criminal allegations involving an increasing number of clients and EY’s insufficient audit responses. However, EY knowingly persisted in their audit and other professional engagements without taking meaningful steps to terminate these relationships or mitigate the risk of audit failures for publicly traded companies. In addition, Howie filed a retaliation claim with OSHA in December 2024 and was subsequently granted authorization to pursue a de novo review in federal court under the Sarbanes-Oxley Act.