WASHINGTON, Jan. 21 (UPI) -- U.S. investigators have sued auditor Grant Thornton, already enmeshed in Italy's Parmalat scandal, over work on a now-bankrupt Michigan mortgage company.
Grant Thornton "caused, aided and abetted" fraud at bankrupt MCA, the SEC said Tuesday. Grant Thornton faces possible fines, suspensions from practice or other restrictions, the Financial Times reports.
The Securities and Exchange Commission took the unusual step of pursuing the whole firm instead of individual auditors as part of a more vigorous enforcement strategy.
Grant Thornton denied any wrongdoing, saying, "The SEC stated (in 2002) that MCA's management had engaged in a carefully concealed fraud that included providing false information and lying to our personnel. In addition, all litigation brought against us involving MCA has been dismissed ... we will vigorously defend ourselves against these charges."
