Tanto Deloitte como Ernst & Young están enfrentando problemas por su rol de auditoría en los recientes escándalos de fraude en Estados Unidos.

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3. Home | Previous Page
SEC Charges Former Deloitte Partner and Son With
Insider Trading
FOR IMMEDIATE RELEASE
2010-140
Washington, D.C., Aug. 4, 2010 — The
Securities and Exchange Commission today High-Res Photo
charged a former Deloitte and Touche LLP
partner and his son with insider trading in
the securities of several of the firm's audit
clients.
Additional Materials
SEC Complaint Against Thomas Flanagan
and Patrick Flanagan
SEC Administrative Order Against Thomas
Flanagan
Litigation Release No. 21612
The SEC alleges that Thomas P. Flanagan of
Chicago traded in the securities of Deloitte
clients, often while serving as a liaison “Thomas Flanagan
between those companies' management repeatedly betrayed his
teams and Deloitte's audit engagement ethical responsibilities and
teams. In this role, Flanagan had access to his clients' trust by trading
on confidential information
advance earnings results and other nonpublic
to enrich himself and his
information from Deloitte's audit family.”
engagements with Best Buy, Sears, and
Merri Jo Gillette
Walgreens as well as the firm's consulting
Director
engagement with Motorola. Flanagan made SEC Chicago Regional
trades in the securities of these and other Office
companies while in possession of the
confidential information, and also tipped his
son Patrick T. Flanagan who then traded on
the basis of the nonpublic information.
The Flanagans agreed to pay more than $1.1 million to settle the SEC's
charges.
"Flanagan's insider trading violated one of the most fundamental rules of
public accounting," said Robert Khuzami, Director of the SEC's Division of
Enforcement. "All audit firms should learn from this unfortunate episode and
employ vigorous controls designed to ensure compliance with the SEC's
auditor independence rules."
Merri Jo Gillette, Director of the SEC's Chicago Regional Office, said,
"Thomas Flanagan repeatedly betrayed his ethical responsibilities and his
clients' trust by trading on confidential information to enrich himself and his
family."
According to the SEC's complaint, filed in the U.S. District Court in Chicago,
Thomas Flanagan worked at Deloitte for 38 years and rose to the position

4. of Vice Chairman of Clients and Markets. The SEC alleges that Flanagan
committed insider trading on nine occasions between 2005 and 2008 by
trading in the securities of multiple Deloitte clients and a company acquired
by Deloitte client Walgreens. Flanagan was in possession of nonpublic
information about those clients that he learned through his duties as a
Deloitte partner, including such material market-moving events as earnings
results, earnings guidance, and acquisitions. Flanagan's illegal trading
resulted in profits of more than $430,000. On four occasions, Flanagan
relayed the nonpublic information to his son, who traded based on that
information for illegal profits of more than $57,000.
In addition to the court-filed complaint alleging illegal insider trading, the
SEC also instituted administrative proceedings against Thomas Flanagan,
finding that he violated the SEC's auditor independence rules on 71
occasions between 2003 and 2008 by trading in the securities of nine
Deloitte audit clients. Accountants are not independent if they own or
control securities in the clients that they audit. The SEC's settled
administrative order finds that while Thomas Flanagan owned or controlled
client securities, Deloitte issued audit reports to the clients stating that the
financial statements contained in the reports had been audited by an
independent auditor. However, Deloitte was not independent due to
Flanagan's ownership and control of the audit clients' securities. As a result,
the SEC's administrative order finds that Thomas Flanagan caused and
willfully aided and abetted Deloitte's violations of the SEC's auditor
independence rules under Regulation S-X. Flanagan also caused and willfully
aided and abetted the clients' violations of the reporting and proxy
provisions of the Securities Exchange Act of 1934.
According to the SEC's complaint, Thomas Flanagan concealed his trades in
the securities of Deloitte's clients and circumvented Deloitte's independence
controls. He failed to report the prohibited trades to Deloitte, lied to Deloitte
about his compliance with its independence policies, and provided false
information to Deloitte's personal income tax preparers about the identity of
the companies whose securities he traded.
As a result of their conduct, the SEC's complaint charged Thomas and
Patrick Flanagan with violations of Sections 10(b) and 14(e) of the
Exchange Act and Rules 10b-5 and 14e-3. The SEC's administrative action
found that Thomas Flanagan caused and willfully aided and abetted
Deloitte's violations of Rule 2-02(b)(1) of Regulation S-X, and caused and
willfully aided and abetted the clients' violations of Sections 13(a) and 14(a)
of the Exchange Act, and Rules 13a-1, 13a-13, and 14a-3 thereunder.
Without admitting or denying the SEC's allegations in the complaint and the
findings in the administrative order, Thomas Flanagan consented to the
entry of an order of permanent injunction, disgorgement with prejudgment
interest of $557,158, a penalty of $493,884, and a denial of the privilege of
appearing or practicing before the SEC as an accountant. Without admitting
or denying the SEC's allegations in the complaint, Patrick Flanagan
consented to the entry of an order of permanent injunction, disgorgement
with prejudgment interest of $65,614, and a penalty of $57,656.
James O'Keefe, Steven Klawans, and Kathryn Pyszka conducted the SEC's
investigation in this matter. The SEC acknowledges the assistance of FINRA
and the Options Regulatory Surveillance Authority in this investigation.
# # #
For more information about this enforcement action, contact:
Timothy L. Warren
Associate Regional Director, SEC Chicago Regional Office

5. (312) 353-7394
Steven L. Klawans
Assistant Regional Director, SEC Chicago Regional Office
(312) 886-1738
http://www.sec.gov/news/press/2010/2010-140.htm
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