By Anna Hirtenstein

(Reuters) – Some Brooge Energy shareholders have filed a U.S. fraud complaint against Ernst & Young, alleging the auditor failed to identify fabricated income in two years of the oil storage firm’s annual reports .

The plaintiffs are Stephen Cannon, Bryant Edwards and Neil Richardson, who were investors in a so-called special purpose acquisition company (SPAC) that bought Brooge in 2019, according to the filing in U.S. District Court in the Southern District of new york .

The plaintiffs allege that Brooge fabricated tens of millions of dollars in revenue and that Ernst & Young’s audit of the company was fraudulent.

Ernst & Young did not immediately respond to an email and phone calls seeking comment. Brooge also did not respond to an email seeking comment.

Brooge agreed to a settlement with the U.S. Securities and Exchange Commission in 2023 on fraud charges, which involved paying a $5 million fine.

“The fundamental financial picture presented by Brooge to the plaintiffs was fraudulent: Brooge in fact fabricated between 30% and 80% of its 2018, 2019 and 2020 revenues,” the filing said.

“Brooge could not have carried out this scheme without the critical support of Ernst & Young.”

Brooge, an oil storage leasing company based in Fujairah, United Arab Emirates, was incorporated in 2013 and counts Mohammed bin Khalifa, the eldest son of the former UAE president, among its shareholders.

Brooge shares closed Tuesday at $1.585, down from a March 2020 high of $12.99.

According to the UAE state news agency WAM, the board of Dubai-listed shipping company Gulf Navigation approved in September the acquisition of companies and assets owned by Brooge, including a capital increase.

One of Brooge’s lines of business was with Coral Energy Pte. Ltd., according to the file. Coral was later renamed 2Rivers and was sanctioned by Britain on Tuesday for allegedly playing a key role in the Russian oil trade.

(Reporting by Anna Hirtenstein; Editing by Mark Potter)