Philadelphia (Oct. 17, 2002) -- The Pennsylvania Insurance Department is suing Big Five firm Deloitte & Touche, alleging they inflated Reliance Insurance Co.'s financial statements by $1 billion resulting in the company's collapse, the Philadelphia Inquirer reported.
In the civil suit, filed this week, Pennsylvania Insurance Commissioner M. Diane Koken accused the New York-based accounting giant and its principal actuary, Jan A. Lommele, of "professional negligence and malpractice, misrepresentation, breach of contract, and aiding and abetting breaches of fiduciary duties." Deloitte has denied any wrongdoing on behalf of its Philadelphia office, which audited Reliance, which subsequently collapsed.
"Deloitte & Touche performed its services for Reliance in accordance with all applicable professional standards and will defend itself accordingly," a spokesman for Deloitte said.
– Electronic Accountant Newswire staff
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