Deloitte & Touche to be Questioned in DVI Bankruptcy Case | AccountingWEB

Deloitte & Touche to be Questioned in DVI Bankruptcy Case

Creditors of the fallen medical finance firm DVI Inc. can question the company's former accounting firm, Deloitte & Touche, about their audits and regulatory filings, a bankruptcy judge ruled Thursday.

According to the Wall Street Journal, the firm opposed the examination of their records because others suing the firm could take advantage of the information uncovered in the probe.

A court-appointed examiner in April found that DVI became “addicted” to the steady cash flow of securitizations and manipulated them, leading to the company's collapse. The examiner also suggested that Deloitte & Touche may be at least partly to blame for years of accounting irregularities.

In addition to documents related to audits and Securities and Exchange Commission filings, DVI's unsecured creditors want information on the solvency of one of DVI's major securitizations.

Deloitte & Touche is named as a defendant in three other lawsuits related to the DVI bankruptcy. The firm has therefore asked for protection against use of information from the bankruptcy probe in other lawsuits.

However, U.S. Bankruptcy Judge Mary Walrath said she would sign off on a probe of Deloitte & Touche, and permit other parties to the bankruptcy to see documents and sit in on depositions, the Journal reported.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.