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April 2008

PwC pays $ 30 M to settle claim of faulty audit

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
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New Page 4

6. PwC pays $ 30 M to settle claim of faulty audit


PricewaterhouseCoopers agreed to pay $ 30 million to settle
claims stemming from its audit of Metropolitan Mortgage & Securities Co., a
financial conglomerate that went out of business four years ago.

The Big Four accounting firm was accused of helping
Metropolian Mortgage disguise its problems by creating an offshore investment
scheme that wound up being what was called “a cleverly disguised tax shelter,”
according to the trust that brought the lawsuit against PwC.

The paper said the $ 30 million would be distributed to
thousands of investors who lost more than $ 460 million in debentures when
Metropolitan collapsed. Most investors were retirees and their family members
living in the Northwest.

(Soruce : CFO.com, US, 4-3-2008)

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