As reports that two trustees at TIAA-CREF
resigned over a relationship with company auditors Ernst & Young
broke on Monday, TIAA-CREF was getting more bad news. According to an SEC filing
, SEC staff notified the company that same day that it was beginning an informal investigation into the company and its funds related to the Ernst & Young matter.
The investigation concerns a business venture owned by the two trustees, William Waltrip
and Stephen Ross
. Ross and Waltrip's venture entered into a relationship with the valuation practice of Ernst & Young on August 1, 2003, according to the filing. Ross, the majority owner of the company, received or will receive $1.33 million from Ernst & Young as a result of the relationship.
TIAA-CREF officials said they would immediately begin a request for proposal for a new auditor.
In an open letter
, Herb Allison , chief executive of TIAA-CREF, said that the company has determined that Ernst & Young's 2003 and 2004 audits were not compromised as a result of the relationships.
Allison also noted that the company has hired an independent advisor, Nicholas Katzenbach
, to review the matter.
Stay ahead of the news ... Sign up for our email alerts now