Judge Lays Bank Losses At Feet Of Auditor

Law360, New York (March 15, 2007, 12:00 AM EDT) -- A federal judge has found Grant Thornton LLP responsible for $24 million in additional losses sustained by the First National Bank of Keystone, which collapsed years ago due to massive fraud.

On Wednesday, U.S. District Judge David A. Faber ruled that regulators could have closed the West Virginia bank five months earlier if Grant Thornton auditors Stan Quay and Susan Buenger had been able to catch "a garden variety form of fraud" that led to the bank’s implosion, according to the AP.

The West Virginia Comptroller...
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