The SEC, Ernst & Young, and... Harry Potter?
In another salvo at Ernst & Young, The Securities and Exchange said in court on Friday that the firm's defenses in a conflict-of-interest case involving Peoplesoft were a work of "fantasy" akin to Harry Potter. The SEC charges Ernst violated independence rules in both acting as auditor of Peoplesoft in the 1990's and as a dealer of Peoplesoft software. Ernst could be barred for six months from taking on new clients. Only KPMG has ever suffered such a fate, and that was about two decades ago, for about 90 days. "Fantasy" or not, the SEC case could rival this summer's best-selling Harry Potter 5 for drama.
More: Reuters, the NY Times, and the WSJ.

Last year, the SEC won a round against Ernst for "improper professional conduct" in the Netherlands. And it marked two firsts: (1) a win against a foreign firm, and (2) the first time the SEC collected (in this case, $400,000) from a foreign firm.
More: SEC

More Ernst in court (all documents in pdf): Complaint and Demand For Jury Trial (FDIC v. Ernst & Young) (Nov. 1, 2002) and
Findings of Fact, Conclusions of Law, Decree of Dissolution, and Judgment Entry (CEO's divorce decree) (In Re: Marriage of Bobrow) (Sept. 20, 2002)