In December 2010, New York Attorney General (AG) Andrew Cuomo recently brought civil charges against Lehman Brothers’ external auditors Ernst & Young (E&Y) for complicity in fraudulently misleading investors. The AG alleges that Lehman’s then-auditor E&Y assisted Lehman in perpetrating financial fraud. In particular, Cuomo has charged the accounting giant with three counts of securities fraud under the Martin Act and a charge of persistent fraud and illegality brought under the Executive Law § 63(12) of New York. The AG claims that E&Y by signing off on the controversial Repo 105 transactions...