Menu

Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Deloitte Japan Violation of Auditor Independence Rules

Deloitte Touche Tohmatsu LLC (Deloitte Japan) paid $2 million to settle charges that it issued audit reports for an audit client at a time when dozens of its employees maintained bank accounts with the client’s subsidiary. According to the Securities and Exchange Commission (SEC), the accounts had balances that exceeded depositary insurance limits in violation of the SEC audit independence rules. Former Deloitte Japan executives Futomichi Amano and Yuji Itagaki settled related charges. The SEC found that Deloitte Japan violated the auditor independence provisions of the federal securities laws and that Amano and Itagaki caused those violations. The SEC also found that Deloitte Japan, Amano, and Itagaki caused the audit client to violate its reporting obligations, and that all respondents engaged in improper professional conduct.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Settlement Announcement
2/13/2019
Contractors Involved Penalty
Total
Deloitte LLP $2,000,000
Further Information Released
SEC Order 2/13/2019
SEC Press Release 2/13/2019

Federal Contractor Misconduct Database