Whistleblower Accuses EY of Aiding Organized Crime in Gambling Sector
Former EY Partner Raises Concerns Over Involvement with Gambling Firms Linked to Crime
Joe Howie, a former partner who dedicated 35 years to Ernst & Young (EY), has come forward with serious allegations. He claims that EY knowingly provided audit and compliance services to gambling clients suspected of having ties to international organized crime, including connections to Chinese mafia figures linked to casino companies listed in the US. Howie also states that the firm retaliated against him after he persistently raised concerns about professional and legal compliance.
Whistleblower Initiates Legal Action Against Ernst & Young
In a lawsuit filed in the Southern District of New York, Howie accuses EY of audit failures that enabled ongoing criminal activities such as money laundering and misinforming investors. He is represented by Wigdor LLP, a notable New York law firm known for successful whistleblower and employment cases.
The lawsuit details how EY issued clean audit reports for clients linked to convicted criminal junket operators Alvin Chau and Levo Chan. These operators managed VIP gambling rooms associated with Triad syndicates. According to Howie, EY’s internal risk assessments were either tampered with or incomplete, and the company overlooked or suppressed advice to cut ties with these high-risk gambling clients. These clients included both US-based and international operators publicly identified in open sources and due diligence reports as connected to organized crime.
The complaint further states that EY’s failures impacted multiple global clients across the Asia-Pacific, EMEIA, and Americas regions. These issues involved poor handling of anti-money laundering risks, related-party transactions, and management integrity concerns. Howie alleges EY disregarded or downplayed links between these clients and known criminals, including Macau-based casino junket operators convicted of large-scale fraud and money laundering.
Alleged Retaliation Against Whistleblower
Howie claims that following his whistleblowing efforts, EY retaliated by forcing him out after 35 years of service, including 24 years as a partner. He says he was removed from key roles, pressured into early retirement, and ultimately expelled from the partnership under harsh conditions.
The complaint emphasizes that Howie consistently flagged serious criminal allegations involving increasing numbers of clients and EY’s insufficient audit responses. Despite these warnings, EY allegedly continued their professional engagements without taking effective actions to sever harmful ties or address audit risks for publicly traded companies. Howie also filed a retaliation complaint with OSHA in December 2024 and has been authorized to seek a federal court review under the Sarbanes-Oxley Act.