Oh yeah, and it was all the homeowners’ fault… Give me a break! Gotta be on the take to believe homeowners had anything at all to do with this scheme!
The big-four audit firm PwC is being sued for $5.5 billion over its failure to detect a fraud that resulted in a bank collapse during the global financial crisis of 2008-2009. This is the biggest lawsuit in PwC history.
The complainant is Taylor, Bean & Whitaker (TBW), which was a top-10 wholesale mortgage lending firm. The trustees of the company are accusing PwC of negligence in their audits of TBW’s lender, Colonial Bank.
In an agreement between the top management of the borrower and the bank, starting from 2002, TBW chairman Lee Farkas sent mortgage data to Colonial Bank for fake loans or those the company had already committed or sold to other investors. By the end of 2007, the scheme had helped the bank accumulate about $1.5 billion in fake or impaired loans.
TB&W doesn’t exist anymore & former CEO Lee Farkas was sentenced to 30 years prison in June 2011. Others were sentenced to terms ranging from 3 months to 8 years.