Deloitte Agrees to Fork Over $149.5 Million for Its Crappy Taylor, Bean & Whitaker Audits

deloitte cyberattack

The Justice Department announced that Deloitte would pay a $149.5 million fine to put “potential False Claims Act liability” to bed for its role as the auditor of Taylor, Bean & Whitaker Mortgage Corp., the failed mortgage originator.

Justice alleged that “Deloitte’s audits knowingly deviated from applicable auditing standards and therefore failed to detect TBW’s fraudulent conduct and materially false and misleading financial statements.” It was this failure that allowed TBW “to continue originating FHA-insured mortgage loans” until the company’s bankruptcy in 2009.

Deloitte settled with TBW’s bankruptcy trustee in 2013 for an undisclosed amount.

Making an impact that matters, people. Just making an impact that matters.

[DOJ]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Even EYers Think PwC Is a Better Firm Than EY

Leave it to EY to turn a call with staff into a high school pep rally. And leave it to one EY employee to hilariously try to torpedo it. This was posted on Fishbowl earlier today: The funny thing is another EYer who was on that call told us he/she was considering doing something similar […]