Deloitte Sued For $7.6B Over Taylor Bean Fraud Role

Law360, New York (September 26, 2011, 7:48 PM EDT) -- Deloitte & Touche LLP was hit with two suits Monday in Florida seeking $7.6 billion in damages claiming the auditing firm was “grossly negligent” in failing to detect a massive criminal fraud carried out by executives of bankrupt Taylor Bean & Whitaker Mortgage Corp.

The suits, filed by bankruptcy trustee Neil F. Luria and Ocala Funding LLC, a wholly owned subsidiary of Taylor Bean, claim Deloitte, which audited Taylor Bean from 2002 until 2009, certified the company's annual financial statements while ignoring "obvious red flags" that...
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