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Trauger Case Summary

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The Trauger Case was the first case to be tried under the Sarbanes-Oxley § 1519, was filed against Ernst & Young (E&Y) partner, Thomas Trauger. The complaint, filed on September 4, 2003, claimed that Trauger altered key documents relating E&Y's audit of NexCard, a credit card company. The government contends that beginning in 2000, NextCard began classifying some of its credit losses as fraud losses, which triggered an investigation by the Office of the Comptroller of the Currency (OCC) in August 2001. The government claims that Trauger was aware of this investigation and even helped draft the company's written response. Allegedly, in response to OCC's request for certain working papers of NextCard's financial statements, Trauger and a colleague,

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