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To: Wharf Rat who wrote (1429702)	12/20/2023 1:49:23 PM
From: Wharf Rat	1 Recommendation Recommended By pocotrader Respond to of 1578701

To: Wharf Rat who wrote (1429702)	12/20/2023 1:51:35 PM
From: Maple MAGA	2 Recommendations Recommended By longz Mick Mørmøny Respond to of 1578701

Deloitte & Touche Agrees to Pay $149.5 Million to Settle Claims Arising From Its Audits of Failed Mortgage Lender Taylor, Bean & Whitaker Wednesday, February 28, 2018 For Immediate Release Office of Public Affairs The Justice Department announced today that Deloitte & Touche LLP has agreed to pay the United States $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 (FHA) in the Department of Housing and Urban Development (HUD). “With taxpayer dollars at stake, auditors must take their obligations seriously when auditing companies that participate in government programs,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “When auditors fail to exercise their professional judgment, and make false statements that allow bad actors to remain in government programs and submit false claims to the government, there will be consequences.” Under HUD’s Direct Endorsement Lender program, TBW was authorized to originate and underwrite mortgage loans insured by the FHA. When a borrower defaults on an FHA-insured loan underwritten and endorsed by a Direct Endorsement Lender such as TBW, the holder of the loan can submit a claim to the United States to recoup losses resulting from the default. To maintain its status as a Direct Endorsement Lender, a lender is required to submit to HUD annual audit reports on its financial statements and related reports on its internal controls and its compliance with certain HUD requirements. Deloitte served as TBW’s independent outside auditor, and issued audit reports for TBW’s fiscal years 2002 through 2008. The United States alleged that during that time period TBW had been engaged in a long-running fraudulent scheme involving, among other things, the purported sale of fictitious or double-pledged mortgage loans, and as a result, TBW’s financial statements failed to reflect its severe financial distress. The United States alleged that Deloitte’s audits knowingly deviated from applicable auditing standards and therefore failed to detect TBW’s fraudulent conduct and materially false and misleading financial statements. The United States alleged that Deloitte’s audit failures extended to the specific financial arrangements through which TBW carried out its fraudulent conduct. By failing to detect TBW’s misconduct, Deloitte’s audit reports allegedly enabled TBW to continue originating FHA-insured mortgage loans until TBW collapsed and declared bankruptcy in 2009. A number of TBW officials were criminally convicted in connection with the conduct at issue. “HUD relies on auditors to ensure the soundness of participants in HUD programs. When CPA firms and auditors fail to detect fraud, waste or abuse the consequences are significant to federal programs, and, ultimately, to the American taxpayer and must be addressed,” said Helen M. Albert, Acting HUD Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability. The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, HUD and HUD’s Office of Inspector General. Updated February 28, 2018

To: Wharf Rat who wrote (1429702)	12/20/2023 1:53:03 PM
From: Maple MAGA	2 Recommendations Recommended By longz Mick Mørmøny Respond to of 1578701

Deloitte admits misuse of government information as scandal engulfing PwC widens Another big four consultancy firm confirms a conflict of interest breach during Senate inquiry, which could prompt further investigations Follow our Australia news live blog for the latest updates Get our morning and afternoon news emails, free app or daily news podcas Henry Belot Fri 14 Jul 2023 03.21 BST Another big four consultancy firm has confirmed it misused government information last year, widening a scandal that has engulfed global giant PwC. Deloitte disclosed the breach as part of an ongoing Senate inquiry, but has so far refused to provide any more details about the incident due to client confidentiality. The firm has also detailed how it was dumped by the Home Affairs department after it failed to disclose a conflict of interest. A similar breach was also identified while working with the Australian National Audit Office (ANAO). PwC’s misuse of confidential tax policy information has triggered a reputation crisis, multiple sackings and parliamentary inquiries, referrals to police and the new National Anti-Corruption Commission, and the divestment of its government services division for just $1. KPMG and Deloitte refuse to join PwC in banning political donations in Australia Deloitte declined to comment when contacted by Guardian Australia about the misuse of government information, but told the Senate inquiry it takes its obligations seriously. “Any matters in relation to the misuse of confidential government information would be investigated in line with our normal processes,” said Deloitte’s response to questions from the committee. “Consequences would vary depending on the findings of our internal investigations and, as with any misconduct, these consequences include disciplinary actions in accordance with our policies, which apply to both partners and employees.” Greens senator Barbara Pocock said the disclosure confirmed the “misuse of government information by consultants goes beyond the PwC tax scandal”. “It has always been a central concern of mine that what we are seeing is just the tip of the iceberg.” Dr Andy Schmulow, an associate professor of law at the University of Wollongong, said the disclosures highlighted industry-wide structural issues needed to be addressed. “I have absolutely no doubt that this is not contained to PwC,” Schmulow said. “What this demonstrates is that the system itself is so dysfunctional … that it is no longer possible, even in theory, to uphold the public good.” Deloitte also confirmed the misuse of confidential or proprietary information on nine additional occasions last financial year, down from 18 a year earlier. Details of these instances were not provided to the Senate and may lead to further investigations. Deloitte did provide details on two conflict of interest breaches involving government contracts. Last year, Deloitte was contracted by the ANAO to audit a government agency’s environment, social and governance data. At the same time, Deloitte was engaged by that same agency to audit its financial statements. “It was identified in August 2022 that Deloitte had not sought pre-approval from the ANAO to provide the service, as required under their independence and conflicts management policies,” Deloitte’s response to the Senate said. PwC admits to another conflict of interest breach Read more Deloitte also referred to the Home Affairs department terminating a contract after an investigation found “an organisational conflict of interest that was not disclosed to the department when it was engaged”. According to an ANAO report published last month, Deloitte was advising the department on IT procurement. At the same time, a Deloitte partner was seconded to a company bidding for work with the department. “At the time of its engagement … Deloitte had an actual conflict of interest and the failure to declare this interest was a breach of the probity plan,” the ANAO report said. Deloitte told the Senate it was “not aware of any other significant conflict of interest matters relating to government work”. Deloitte also declined to provide the Senate with details on how its partnership is structured. PwC supplied a copy of its partnership agreement, but requested it not be shared beyond committee members. “The partnership agreement between the partners of Deloitte is a confidential and commercially sensitive document,” Deloitte’s response said. “It contains sensitive information that could potentially present a commercial advantage to our competitors and prejudice our partnership.” Earlier this week, PwC admitted to another serious conflict of interest breach but has clarified that it did not involve the misuse of government information.

To: Wharf Rat who wrote (1429702)	12/20/2023 1:56:45 PM
From: Maple MAGA	2 Recommendations Recommended By longz Mick Mørmøny Respond to of 1578701

Deloitte admits wrongdoing, widening scandal's grip on consultancy firms Canberra, AustraliaEdited By: Hardik BhardwajUpdated: Jul 14, 2023, 12:21 PM IST Deloitte layoffs: The Deloitte Company logo is seen on a commercial tower in Gurugram near New Delhi, India Photograph:(Reuters) Deloitte, one of the world's largest consultancy firms, has acknowledged the misuse of government information, further widening the scandal that has recently engulfed fellow big four firm PwC. The disclosure came as part of an ongoing Senate inquiry, although Deloitte has been reluctant to provide specific details due to client confidentiality. Deloitte, one of the world's largest consultancy firms, has acknowledged the misuse of government information, further widening the scandal that has recently engulfed fellow big four firm PwC. The disclosure came as part of an ongoing Senate inquiry, although Deloitte has been reluctant to provide specific details due to client confidentiality. The accounting firm revealed that the Home Affairs Department dropped it after failing to disclose a conflict of interest, similar to a breach identified during its work with the Australian National Audit Office (ANAO). PwC, on the other hand, has been embroiled in a reputation crisis, resulting in dismissals, parliamentary inquiries, police referrals, and the divestment of its government services division for a mere $1 following its misuse of confidential tax policy information. When approached for a comment on the misuse of government information, Deloitte declined to respond directly but assured the Senate inquiry that it takes its obligations seriously. The firm stated that any instances of confidential government information misuse would be investigated according to their standard procedures. The consequences would vary depending on the internal investigation findings, potentially including disciplinary actions against both partners and employees, in line with their policies addressing misconduct. The Guardian cited Senator Barbara Pocock of the Greens party, who asserted that Deloitte's disclosure confirmed that the misuse of government information by consultants extends beyond the PwC tax scandal. She expressed concerns that the revelations thus far are only the tip of the iceberg. Dr. Andy Schmulow, an associate professor of law at the University of Wollongong, told The Guardian that the disclosed breaches expose wider structural issues in the industry that must be addressed. "What this demonstrates is that the system itself is so dysfunctional … that it is no longer possible, even in theory, to uphold the public good," Dr Schmulow told the UK publication. In addition to the misuse of government information, Deloitte also confirmed nine instances of misusing confidential or proprietary information during the previous fiscal year. However, specific details regarding these incidents were not provided to the Senate, leaving room for potential further investigations. Deloitte did disclose two instances of conflict of interest breaches related to government contracts. In one case, Deloitte audited the environmental, social, and governance data of a government agency while simultaneously auditing its financial statements without seeking pre-approval from the ANAO as required by their independence and conflict management policies. The second breach involved the Home Affairs Department terminating a contract after an investigation revealed an undisclosed organizational conflict of interest. Deloitte informed the Senate that it was unaware of any other significant conflict of interest matters concerning government work. Still, it declined to share details about its partnership structure, citing the document's sensitivity and potential impact on commercial advantage and partnership integrity. PwC, in contrast, provided a copy of its partnership agreement to the Senate but requested that it remain confidential among committee members. Earlier this week, PwC admitted to another serious conflict of interest breach; however, it clarified that it did not involve the misuse of government information. (With Inputs from Agencies) Hardik Bhardwaj