« Solyndra cleared for October 27 bankruptcy auction | Main | Dodgers Fans to McCourt: Show Us the Money In Bankruptcy Court!! »

September 27, 2011

Deloitte sued for $7.6B in mortgage fraud case

"A pair of lawsuits filed Monday claim that Deloitte & Touche LLP, one of the nation's largest accounting firms, should pay $7.6 billion in damages for failing through years of audits to detect massive fraud at a now-defunct Florida mortgage company.

'They certainly did not do their job,' said attorney Steven Thomas, who represents those suing Deloitte. 'This is one of those cases where the red flags are staring you in the face, and you've got to do a lot, and they did not.'

Deloitte spokesman Jonathan Gandal responded that the company rejects the claims, calling them 'utterly without merit.'

The lawsuits were filed in Miami-Dade Circuit Court on behalf of the bankruptcy trustee for the fraudulent mortgage firm, Taylor Bean & Whitaker, and by Ocala Funding LLC, a company that purchased hundreds of millions of dollars' worth of mortgages from Taylor Bean. The bankruptcy trustee is attempting to recover money for Taylor Bean creditors."

Read more here.

September 27, 2011 in Current Affairs | Permalink


TrackBack URL for this entry:

Listed below are links to weblogs that reference Deloitte sued for $7.6B in mortgage fraud case:


Post a comment