Hong Kong designer and manufacturer of eyewear, Moulin International, listed on the the Hong Kong Exchange in 1993. In December 2004, auditors Ernst & Young resigned citing an inability to agree on fees, to be replaced by Deloitte. However, just five months later, in April 2005, trading was suspended after Deloitte raised concerns over the sufficiency of audit evidence. In May, Moulin announced that it was in technical default of its banking arrangements involving credit facilities of some HK$750m. A subsequent investigation and court case revealed that around 30% of sales were fabricated to fake North American clients. Interestingly, Ernst & Young was not responsible for this part of the audit, relying on a third party. Sixteen years later, in 2019, Ernst & Young and its employees were fined US$60,000 for the audit although they generated fees from Moulin of US$600,000 in 2003, alone. Moulin is a confirmed fraud.  

Last updated December 2021

The information on this page has been compiled from publicly available sources. GMT Research Limited has not verified the information and does not warrant its accuracy. Any claims made or views expressed are not necessarily those of GMT Research Limited.