One of the world’s largest accounting firms, Ernst & Young (EY), is facing allegations that it knowingly enabled fraud, misled regulators, and ignored links between its clients and organized crime connected to former Macau junket groups Suncity and Tak Chun, according to a whistleblower lawsuit filed in U.S. federal court.
Joe Howie, a former senior partner with 35 years at EY, filed the complaint under the Sarbanes-Oxley Act, claiming the firm retaliated against him for repeatedly raising concerns about what he described as widespread violations of U.S. securities laws and unethical conduct by the firm’s leadership.
The detailed 118-page lawsuit alleges that EY provided auditing and advisory services to publicly traded companies allegedly tied to transnational organized crime – particularly in the gambling and hospitality sectors across Asia – while overlooking glaring red flags.
Among the most serious accusations is that EY audited U.S.-listed casino operators with documented ties to notorious junket operator Alvin Chau, who was convicted in Macau for running one of the world’s largest illegal gambling and money laundering networks.
Chau’s operations, through his company Suncity Group, generated over $100 billion in illicit activity, according to court rulings.
Alvin Chau, once the face of Macau’s high-roller gambling scene, was arrested in 2021 and convicted in 2023 on multiple charges including illegal betting, fraud, and organized crime. His empire, built on VIP room junkets, collapsed as authorities in China and Macau tightened their grip on underground finance.
Shortly after, Levo Chan, another VIP room operator, was also convicted of criminal association and illegal gambling. Both men were linked to companies audited by EY, according to the lawsuit.
Howie claims EY knowingly maintained business relationships with Chau’s affiliated companies, including U.S. registrants with major casino operations in Macau. These firms allegedly failed to disclose their links to Chau and other organized crime figures such as Levo Chan, who was also convicted for similar crimes.
“Despite repeated warnings, EY continued profiting from engagements with these high-risk clients,” the lawsuit says, adding that Howie was ultimately sidelined, forced into early retirement, and expelled from the partnership in retaliation.”
Howie alleges that at least five U.S.-listed companies with connections to Macau’s gaming industry were either controlled by or closely associated with “Chinese Triad-linked families, including descendants of Stanley Ho”. Ho’s family remains influential in multiple casino enterprises, including Melco Resorts, SJM Holdings and MGM China.
‘The founder was repeatedly denied gaming licenses in several jurisdictions, including the
United States and Australia, due to his well-documented ties to organized crime. However, he was never charged or convicted and denied criminal associations’, the lawsuit adds.
The US listed companies are not named in the lawsuit with several sections covered. Currently of the six Macau gaming concessionaires, three are linked to US entities: Wynn Macau, MGM China and Sands China.
The complaint identifies three families, not by name, but by their associations and roles in companies allegedly tied to Chau’s junket empire and other underground networks.
According to Howie, EY provided unqualified audit opinions to these entities, failing to report material weaknesses in anti-money laundering programs or conflicts of interest.
In response to raising these concerns, EY downplayed the issues and sought to
rationalize EY’s and its clients’ involvement with Chau and other organized crime-linked figures. They characterized the concerns as unproven media allegations, dismissed the extensive regulatory,’ the lawsuit says.
‘Investigations in Australia or arrests in Macau as speculative or politically motivated, and
incorrectly asserted that no relevant parties had been arrested, despite multiple convictions already having occurred.’
Internal pressure and retaliation
Howie, who co-led EY’s Global Risk Center of Excellence, says he repeatedly raised red flags about the firm’s failure to adhere to Public Company Accounting Oversight Board (PCAOB) standards. He alleges EY failed to conduct proper due diligence, ignored adverse media, and resisted calls to exit relationships with clients under criminal investigation.
Rather than acting on his warnings, senior leadership allegedly isolated Howie, blocked his access to key teams, and removed him from internal meetings. He also claims that some high-risk clients had former EY partners serving on their boards and audit committees, undermining auditor independence.
“Mr. Howie’s lawsuit alleges a troubling pattern, namely, EY’s repeated decisions to protect its revenue and reputation at the expense of public trust,” said Michael Willemin, Howie’s attorney at Wigdor LLP.”
EY has not commented on the lawsuit. The firm has previously faced penalties, including a $100 million fine by the SEC in 2022 over ethics exam cheating and misleading regulators. Howie argues that the firm’s behavior in this case shows a continued disregard for ethical and legal obligations.
The lawsuit seeks damages for retaliation and whistleblower protection under federal law.
