The Securities and Exchange Commission today announced that Deloitte & Touche LLP has agreed to pay $50 million to settle charges stemming from its audit of Adelphia Communications Corporation's fiscal year 2000 financial statements. The Commission issued an Order that finds that Deloitte engaged in improper professional conduct and caused Adelphia's violations of the recordkeeping provisions of the securities laws because it failed to detect a massive fraud perpetrated by Adelphia and certain members of the Rigas family. In addition, the Commission filed a federal district court action alleging that Deloitte failed to implement audit procedures designed to detect the illegal acts at Adelphia. The $50 million payment will be deposited into a fund established to compensate victims.
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