Lawsuit Against Bank Auditor PWC Goes to Court for $5.5 Billion Over Colonial Bank, Taylor, Bean & Whitaker Fraud

Mugshot Lee Farkas

Lawsuit Against Bank Auditor PWC Goes to Court for $5.5 Billion Over Colonial Bank, Taylor, Bean & Whitaker Fraud

Colonial Bank in Miami Beach, on August 17, 2009, days after it failed. The bank’s fraud with Taylor, Bean & Whitaker is the subject of a lawsuit against its auditor, PricewaterhouseCooper, which failed to catch the fraud for seven years.

The largest-ever lawsuit against an auditing firm is set to open Monday in a Miami-Dade County Circuit Court, pitting Big Four firm PwC against a trustee of the defunct Taylor, Bean & Whitaker Mortgage Corporation.

At stake: $5.5 billion.

The lawsuit was filed in 2013 by a trust formed following the bankruptcy of Ocala-based Taylor, Bean & Whitaker, which in the early 2000s was one of the nation’s largest mortgage companies. The firm was raided by federal agents in 2009 for its part in a seven-year, multibillion-dollar fraud scheme with Colonial BancGroup.

According to the lawsuit, the fraud went undetected by PwC, the independent public auditor in charge of auditing Colonial, as a result of “gross negligence.”

PwC maintains that it, too, was duped.

The $5.5 billion action is one of a wave of suits against major auditing firms, including PwC, in the aftermath of the 2009 banking crisis. Most have alleged faulty work, said Jonathan Perlman, equity partner at Miami-based firm Genovese Joblove & Battista, who has prosecuted several cases against auditing firms. A majority of the cases have settled, including a suit brought against PwC for the alleged negligent auditing of failed brokerage MF Global Holdings Ltd. PwC paid $65 million in a settlement.

More here…

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4closureFraud.org

 

Comments
3 Responses to “Lawsuit Against Bank Auditor PWC Goes to Court for $5.5 Billion Over Colonial Bank, Taylor, Bean & Whitaker Fraud”
  1. lvent says:

    In other words, it’s state run terrorism by the crooks in office who think we’re too stupid to get it.

    It’s MARXIST LENNINIST RESOCIALISM to rob the people which is state run welfare economics
    by FALSE IMPRISONMENT by FABRICATION OF EVIDENCE.

  2. lvent says:

    Moreover, the crooks stole my identity by stealing my social # 341-66-6698.

  3. lvent says:

    They must be in bankruptcy because the trusts never existed so the trustees don’t either.

    Where’s their proof of loss when their fraud became the hardship of others?

    They have no trustees receipts because they robbed us & if they did the bailouts would be grand theft larcrny because they got paid but we didn’t.

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