February 28, 2018
Deloitte & Touche agreed to pay $149.5 million to resolve allegations of violating the False Claims Act 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). According to the government, TBW engaged in a long-running fraudulent scheme involving the sale of fictitious or double-pledged mortgage loans, and as a result, TBW’s financial statements failed to reflect its severe financial distress. The government alleged Deloitte, as TBW’s independent outside auditor, knowingly deviated from applicable auditing standards and therefore failed to detect TBW’s fraudulent conduct enabling TBW to continue originating FHA-insured mortgage loans until TBW collapsed and declared bankruptcy in 2009.
DOJ