PracticeAuditDeloitte sued for billions over audit of failed US mortgage provider

Deloitte sued for billions over audit of failed US mortgage provider

Deloitte in the US sued for $7.6bn for allegedly failing to spot fraud during its audits of collapsed US mortgage giant TBW

DELOITTE US HAS BEEN SUED for billions of dollars for allegedly failing to detect fraud during its audit work at collapsed US mortgage firm.

A trust managing the bankruptcy of Taylor, Bean & Whitaker Mortgage Corp (TBW) has filed a claim for a combined $7.6bn (£4.9bn), reported Reuters.

Deloitte had certified the mortgage business as viable with accurate financial statements between 2001 and 2008, which was false, claimed the trustee Neil Luria of Navigant.

Former TBW chairman Lee Farkas was sentenced to 30 years in prison for fraud. He had been accused of covering up large losses at the mortgage company by moving funds between accounts.

The Big Four firm said the claims were “utterly without merit”.

“The plaintiffs in these cases, Taylor Bean & Whitaker and Ocala Funding, were the wholly-owned private companies through which convicted felon Lee Farkas and his co-conspirators committed their crimes. The bizarre notion that his engines of theft are entitled to complain of injury from their own crimes and to sue the outside auditors they lied to defies common sense, not to mention the law. These claims are utterly without merit.”

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

3m Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

3m Alia Shoaib, Reporter
Latest Big Four auditor changes

Audit Latest Big Four auditor changes

4m Alia Shoaib, Reporter
FRC closes investigation into PwC over Tesco accounts

Accounting Firms FRC closes investigation into PwC over Tesco accounts

6m Alia Shoaib, Reporter
Deloitte set for brickbuilder Ibstock audit

Accounting Firms Deloitte set for brickbuilder Ibstock audit

12m Stephanie Wix, Writer
Deloitte scoops GSK 'mega audit' from PwC

Audit Deloitte scoops GSK 'mega audit' from PwC

1y Kevin Reed, Writer
PwC scoops Rolls-Royce audit as tender results pile up

Accounting Firms PwC scoops Rolls-Royce audit as tender results pile up

1y Stephanie Wix, Writer