Deloitte Touche sued for $7.6bn in mortgage fraud case

[dipsydoodle]

Giant accounting and consulting firm Deloitte Touche Tohmatsu has been accused of failing to detect fraud during audits of a mortgage firm which failed during the US housing crash.

A trust overseeing now-defunct Taylor, Bean & Whitaker (TBW), and one of the company's subsidiaries, have filed complaints in a Florida court.

They are claiming a combined $7.6bn (£4.9bn) in losses.

TBW shut down after federal agents raided its headquarters in August 2009.

http://www.bbc.co.uk/news/business-15069976

[Democracyinkind]

1. I know this is serous, but

who in his right mind would do business with an outfit called "Deloitte Touche"? It just doesn't sound right.

[Poll_Blind]

5. Deloitte & Touche is one of the biggest and "well respected" auditing organizations and so...

...as strange as the name may sound, it's just a brand. Probably an old one.

Anyway, these big well-known auditing companies are sought after because their "brand" carries a lot of weight with investors. Maybe you've heard of "Price Waterhouse Coopers"- they also have a lot of weight in their brand. Anyway, investors give a lot of weight to audits performed by these big names because some of these services companies have been around for over 100 years.

Anyway, that's that.

This actually could be a serious threat to D&T if it can be proven that their audits were misleading or incomplete. It would have a really big impact on their "brand", as perception of their thoroughness is a huge draw for clients considering their company.

PB

[Democracyinkind]

7. Thanks for your insightful response

I once worked for one of the companies you mentioned, writing ethics guidelines for risk management. Total sham.

[banned from Kos]

2. This is the Lee Farkas case - he was convicted and is the slammer

for 20-30 years.

there is no question as to the fraud here.

[avaistheone1]

3. Things will really start changing for the better when most of these mega fraudsters are

are sued and sent to jail as well.

k&r

[Lint Head]

4. I have dealt with these people at Deloitte Touche. They are typical

corporate yes men and women.

[malaise]

6. Saw this on BBC this morning

Let them eat one another

[TNLib]

8. Deloitte and Touchec did some IT consulting for TVA when I use to work there.

They billed out tons of work and didn't produce much of anything most of the higher paid consultants didn't even show up to work half the time. Some of these companies like Price Waters, Deloitte ect are just modern day scam artist.

[LiberalFighter]

9. Everyone of their officers and board members should pay the price.