A former EY senior partner alleged the firm turned a blind eye to organised crime ties at multiple gambling clients, including US-listed casino groups.
A former Ernst & Young (EY) senior partner alleged the firm turned a blind eye to organised crime ties at multiple gambling clients, including US-listed casino groups, and retaliated against him for raising the alarm.
The former partner, who worked in various roles at the firm over a 35-year stretch, has accused EY of knowingly providing audit and compliance services to gambling clients with alleged links to transnational organised crime, including Chinese mafia figures linked to US-listed casino groups.
In a whistleblower lawsuit filed in the Southern District of New York, Joe Howie claimed EY’s audit failures enabled criminal activity, money laundering and misleading investor disclosures to continue unchecked.
He further alleged the firm retaliated against him after he repeatedly flagged the risks internally and attempted to force compliance with professional and legal obligations.
Howie said he uncovered systemic failures across EY’s global operations from 2017 to 2024, including the firm’s relationship with a group of casino companies, collectively referred to in the complaint as the “Casino group registrants”, allegedly linked to a broader network responsible for $100bn in illegal activity.
The complaint claims EY issued clean audits for these clients despite their alleged ties to convicted criminals Alvin Chau and Levo Chan, junket bosses who operated high-roller VIP rooms connected to Triad syndicates.
The whistleblower also said EY’s internal risk assessments were often incomplete and that the firm suppressed or ignored recommendations to disengage from high-risk clients.
These included US and international gambling operators including businesses flagged in public sources and due diligence reports as having alleged ties to organised crime
Howie’s attorneys said his findings showed that EY was facilitating activity in violation of professional standards, committing discreditable acts of professional misconduct, and potentially committing violations of law.
In response to the allegations, an EY spokesperson told NEXT.io: “This claim is without merit, and we wholly disagree with Mr. Howie’s characterisation of events.”
Alleged audit failures extend to multiple jurisdictions and publicly listed clients
According to the complaint, EY’s failures spanned several global clients across Asia-Pacific, EMEIA and the Americas, including US registrants whose filings included failures to properly identify or respond to AML risks, related-party transactions, and concerns about management integrity.
Howie claimed EY ignored or downplayed connections between these clients and known criminal actors, including casino junket operators convicted of large-scale fraud and laundering offences in Macau.
The complaint said: “Despite Howie’s repeated warnings about serious criminal allegations against a growing list of clients and EY’s inadequate audit responses, the Defendants knowingly continued their audit and other engagements without taking effective action to end these relationships or reduce the risk of audit failures for publicly traded clients.”
Howie also accused EY of misleading regulators and the public about its internal reforms following scandals like the Wirecard collapse.
He alleged that efforts such as the “Strengthening Trust and Confidence” initiative were used to placate external scrutiny rather than drive meaningful change.
The complaint lists several EY clients as allegedly being controlled or materially influenced by members of organised crime families or their business associates.
In particular, Howie identified Registrants 1 through 3 as US-listed casino operators tied to so-called “Chinese mafia” families and claimed that EY allowed their filings to include misleading statements about financial controls, AML safeguards and regulatory compliance.
The former partner further alleged that EY “could not reasonably ensure that its fees were not paid with proceeds from illegal activities” and that the firm’s actions made it potentially liable under US anti-money laundering laws.
Whistleblower retaliation
Howie claims EY forced him out of his role after 35 years with the firm, including 24 as a partner, in retaliation for his whistleblowing.
He said he was stripped of his positions, threatened with early retirement, and ultimately removed from the partnership under punitive terms.
According to the complaint, Howie filed a retaliation charge with the Occupational Safety and Health Administration (OSHA) in December 2024 and was later authorised to seek de novo review in federal court under the Sarbanes-Oxley Act.
Howie is represented by respected New York employment law firm Wigdor LLP, which has previously won jury awards in other whistleblower cases.
EY has not yet filed a response.