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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…

In the Matter of Deloitte & Touche LLP, ALPS Fund Services, and Andrew C. Boynton (Violation of Auditor Independence Rules)

The Securities and Exchange Commission (SEC) charged Deloitte & Touche LLP with violating auditor independence rules when its consulting affiliate maintained a business relationship with a trustee serving on the boards and audit committees of three funds it audited. Deloitte agreed to pay $497,438 in disgorgement of audit fees, plus prejudgment interest of $116,478 and a civil penalty of $500,000 to settle the charges, which it neither admitted nor denied. According to the SEC, Deloitte violated the rules with respect to the appearance of independence by failing to follow its own policies and conduct an independence consultation prior to entering into a new business relationship with the trustee. Deloitte failed to discover that the required initial independence consultation was not performed until nearly five years after the independence-impairing relationship had been established between Deloitte Consulting LLP and the trustee, who was paid consulting fees for his external client work. Meanwhile, Deloitte represented in audit reports that it was independent of the three funds while the trustee simultaneously served on their boards and audit committees.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Order
7/1/2015
Contractors Involved Penalty
Total
Deloitte LLP $1,113,916
Further Information Released
SEC Order 7/1/2015
SEC Press Release 7/1/2015

Federal Contractor Misconduct Database