Deloitte sued for $7.6 billion after ignoring 'red flags' in TBW fraud

Deloitte has been sued by TBW's bankrupty trustee and a TBW subsidiary for $7.6 billion in losses, after failing to detect fraud in the mortgage lender

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Deloitte Touche Tohmatsu is being sued for $7.6 billion after failing to detect fraud in its audit of now-defunct mortgage firm Taylor, Bean & Whitaker (TBW).

TBW's bankruptcy trustee Neil Luria and TBW subsidiary Ocala Funding filed the suits in Miami Circuit Court on September 26, suing for losses sustained when TBW collapsed in 2009. Luria, acting on behalf of TBW creditors, is asking for $6 billion in damages, while Ocala is claiming $1.6 billion.

Deloitte had certified TBW as being a

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