1MDB scandal During 2021, Deloitte's
Malaysia affiliate agreed to pay the Malaysia government $80 million to resolve all claims related to its auditing of accounts of scandal-linked state fund
1MDB and its unit SRC International from 2011 to 2014. Malaysian and U.S. authorities say at least $4.5 billion was stolen from 1MDB between 2009 and 2014 by high-level officials of the fund and their associates.
Adelphia Communications The
Securities and Exchange Commission announced on 26 April 2005 that Deloitte had agreed to pay $50 million to settle charges relating to
Adelphia's 2000 financial statements. The settlement was later reported to be as high as $210m or $167.5m.
Autonomy Following
Autonomy's 2011 sale to
Hewlett-Packard, the British software company was accused of accounting improprieties that contributed to an $8.8 billion write-down of Autonomy's value. In May 2018, the UK-Based
Financial Reporting Council (FRC) launched disciplinary action against Deloitte, Autonomy's auditor at the time of the sale. Deloitte partners who led the audit were accused of failing to correct false and misleading information filed with the FRRP, and otherwise failing to act with objectivity during the course of the audit. The FRC's action followed legal proceedings in the US that found former Autonomy executive Sushovan Hussain guilty of fraud earlier that month. During 2020, Deloitte was fined a record £15 million and two of its former partners involved in the audits, Richard Knights and Nigel Mercer, were also fined and sanctioned by the UK accounting watchdog, the FRC.
Banro Corporation audit independence fine The
Public Company Accounting Oversight Board fined Deloitte Canada $350,000 for failing to maintain its independence during three consecutive audits of a Canadian gold-mining company, Banro Corporation.
Bondfield Construction CPA Ontario has brought disciplinary charges against two Deloitte partners, Felice "Phil" Iorio and Steve Kostich, for professional misconduct related to their work on audits for failed
Bondfield Construction. Bondfield filed for creditor protection in April 2019 and former executives are being sued to recover funds siphoned from the company through a fraudulent invoicing scheme.
Carillion Deloitte had acted as internal auditor at construction and services giant
Carillion before it went into liquidation in January 2018. The "excoriating" and "damning" (
The Guardian) final report of the Parliamentary inquiry into Carillion's collapse was published on 16 May 2018, and criticised Deloitte for its involvement in the company's financial reporting practices.
China Huarong Asset Management Co. In March 2023,
China's Ministry of Finance fined Deloitte 211.9 million yuan ($30.8 million) for illegal auditing deficiencies in the audit of
China Huarong Asset Management Co. The Ministry found that Deloitte had failed to maintain professional skepticism during the audit. Huarong was fined 800,000 yuan ($116,227) for its role in the auditing deficiencies.
Johnston Press audit During 2020, the UK accounting regulator, the Financial Reporting Council, fined Deloitte's UK affiliate £362,500 and reprimanded both the firm and an unnamed audit partner over failures in its audit work for
Johnston Press.
Livent In proceedings arising from the insolvency of the former entertainment company
Livent, in April 2014 its special receiver obtained judgment against Deloitte for $84,750,000 in the
Ontario Superior Court of Justice, in relation to Deloitte's failure to exercise its
duty of care with respect to the audit of Livent's financial statements during 19931998. The ruling was upheld by the
Ontario Court of Appeal in January 2016, but in December 2017, the
Supreme Court of Canada in
Deloitte & Touche v Livent Inc (Receiver of) allowed an appeal in part, declaring that liability existed only in respect of Deloitte's negligence in conducting the audit for Livent's 1997
fiscal year, and accordingly reduced the amount of damages awarded to $40,425,000.
Mitie plc In April 2022, Deloitte's UK affiliate was fined £2 million by the UK accounting regulator, Financial Reporting Council, over its 2016 audit of British outsourcing firm,
Mitie plc.
Philip Services Corp Philip Services Corp was a Canadian metals recycling company that collapsed following the revelation of accounting issues and internal fraud. A class action launched on behalf of US investors against Philip's Canadian auditor Deloitte & Touche LLP was settled in 2007 with Deloitte agreeing to pay US$50.5 million.
Serco Geografix Ltd. On 4 July 2019, the Financial Reporting Council fined Deloitte for its failure to properly audit the accounts of a
Serco Group subsidiary, Serco Geografix, in 2011 and 2012. The United Kingdom's watchdog fined Deloitte £4.2 million and an additional £300,000 towards the costs of the investigation. Deloitte's audit engagement partner Helen George was also fined £97,500. FRC stated that the two parties have been sanctioned for their failure to act in accordance with the fundamental principle of professional competence and due care.
SIG plc In December 2022, Deloitte's UK affiliate was fined £0.9 million (approximately US$1.1 million) by the Financial Reporting Council. The fine came as a result of the company failing to obtain and supply enough audit evidence testing, rebate terms and debtor balances in connection with the 2015/16 audit of the British subsidiary of Swiss building materials firm
SIG plc.
Standard Chartered In August 2012, Deloitte Financial Advisory Services (DFAS) publicly denied that as the official internal auditors for
Standard Chartered, it helped the bank cover up money laundering operations related to Iran which were earning the bank significant profits by "intentionally omitting critical information". DFAS paid the state of New York a $10 million settlement, was required not to take on new business for one year from designated New York banks, and was required to implement reforms in order to prevent similar problems in the future. The state regulator stated that there was no evidence DFAS intentionally helped Standard Chartered launder money.
Steinhoff International In June 2018, Dutch investors' organisation VEB instituted class action legal proceedings against Deloitte's Dutch affiliate on behalf of shareholders who suffered losses as a result of the fraud committed by
Steinhoff International. VEB claimed that Deloitte was liable for deficiencies in the audit of Steinhoff. In October 2020, VEB withdrew its case after the Dutch and South African Deloitte firms agreed to contribute a combined €70 million towards a combined settlement offered by Steinhoff to settle all claims against Steinhoff as a result of the fraud. In a statement published by VEB, it was stated that the settlement by Deloitte did not imply an admission of guilt.
Tingo A Deloitte network firm named Brightman Almagor Zohar & Co., sometimes known as Deloitte Israel, gave an unqualified audit opinion on the accounts of
Tingo Group, Inc for 2022. This became controversial when a report by
Hindenburg Research identified "obvious errors" in Tingo's financials, making Hindenburg "suspect Deloitte Israel missed or rushed through procedures that would have uncovered important findings", and the
U.S. Securities and Exchange Commission accused Tingo Group and others of a fraud of "staggering" scope.
Tongaat Hulett In January 2022,
South African sugar producer
Tongaat Hulett announced that it would be suing Deloitte for failing to detect irregularities in its financial statements from 2011-2018 that led to the equity of the company being overstated by R12 billion. In February 2023, Tongaat and Deloitte reached a settlement, in which Deloitte would pay Tongaat R260 million for six years of audited financial statements without admitting liability. ==Litigation and regulatory action – consulting and oversight==