Deloitte Claims Stand In Fraud Scheme Suit

Law360, New York (October 28, 2008, 12:00 AM EDT) -- Financial advisory firm Deloitte & Touche LLP can be held accountable for allowing insiders at bankrupt USA Commercial Mortgage Co. to steal from the mortgage company and defraud investors, a federal judge has ruled.

Judge Philip Pro on Friday denied Deloitte’s motion to dismiss the case, which was filed by a liquidation-related trust for USA Commercial Mortgage in the U.S. District Court for the District of Nevada.

In the complaint, USACM Liquidating Trust alleged that the lender’s former auditor, Deloitte, aided and abetted in a securities...
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