Federal Contractor Misconduct Database (FCMD)
False Claims Arising from Taylor, Bean & Whitaker Audits
Deloitte & Touche LLP agreed to pay $149.5 million 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. The government alleged that audits Deloitte issued for TBW for fiscal years 2002 through 2008 deviated from applicable auditing standards and failed to detect TBW’s fraudulent conduct and materially false and misleading financial statements. TBW declared bankruptcy in 2009, and a number of TBW officials were criminally convicted in connection with the conduct at issue.
- Misconduct Type
- Government Contract Fraud
- Enforcement Agency
- Contracting Party
- Housing and Urban Dev.
- Court Type
- Date of Settlement Announcement