FBI arrests E&Y former partner in NextCard audit case

FBI agents arrested a former partner of Big Four accounting firm Ernst & Young on criminal charges of obstructing federal investigations, US officials said. Officials said former E&Y partner Thomas Trauger, 40, was arrested on Thursday.‘‘Today’s actions mark one of the first instances in which prosecutors have been able to prosecute those who would seek to destroy, alter or falsify financial information,’’ said Robert McCallum, acting US deputy attorney general.

In parallel actions, the Securities and Exchange Commission (SEC) said it brought related administrative proceedings in the case, which involves audit work done by E&Y for online credit card issuer NextCard Inc., based in San Francisco. The SEC said it brought an unsettled administrative proceeding against Trauger and Michael Mullen, 33, a former E&Y audit manager, as well as a settled proceeding against Oliver Flanagan, 34, also a former E&Y manager and an Irish citizen. ‘‘The investigation is still ongoing,’’ said Robert Mitchell, the SEC’s San Francisco assistant district administrator.