Deloitte agrees to pay $149.5 million to settle Taylor Bean suit
On February 28, DOJ announced a $149.5 million settlement with Deloitte & Touche LLP to resolve potential False Claims Act liability arising from Deloitte’s role as the independent outside auditor of Taylor, Bean & Whitaker Mortgage Corp. (TBW), a failed originator of mortgage loans insured by the Federal Housing Administration (FHA) in the Department of Housing and Urban Development (HUD). TBW had allegedly been engaged in a long-running fraudulent scheme involving the purported sale of fictitious or double-pledged mortgage loans. DT issued audit reports for TBW for fiscal years 2002 through 2008. DOJ alleged that Deloitte’s alleged audit failures caused the firm to fail to detect TBW’s fraudulent conduct and that the financial statements were materially false and misleading.
