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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Reliance Insurance Company Audit
Misconduct Type: Securities
Enforcement Agency: State/Local
Contracting Party: None
Court Type: Civil
Synopsis: The Pennsylvania Insurance Department filed a lawsuit against Deloitte, the auditor of Reliance Insurance Company, which was liquidated in 2001 after a shortfall of over $1 billion in assets was discovered. The civil suit accused Deloitte Touche LLC and Deloitte principal actuary Jan A. Lommele of professional negligence and malpractice, misrepresentation, breach of contract, and aiding and abetting breaches of fiduciary duties by Reliance chairman Saul P. Steinberg and other former officials. In November 2008, Deloitte settled the lawsuit for $40 million.