Deloitte Liable For Mortgage Execs' Fraud, 9th Circ. Told
By Beth Winegarner
Law360, San Francisco (March 15, 2013, 6:54 PM EDT) -- A Nevada federal court erred when it excused financial advisers Deloitte & Touche LLP from liability for breaching a contract and allowing insiders at USA Commercial Mortgage Co. to steal from the now-bankrupt mortgage company and defraud investors, the company argued Friday, urging the Ninth Circuit to revive the case.
The liquidating trust for USA Commercial — which went bankrupt in 2006 — argued that the misdeeds of mortgage-company CEO Thomas Hantges and President Joseph Milanowski could not be imputed to the company as a whole,...