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SEC Goes After Adelphia Auditors

The Securities and Exchange Commission Friday announced administrative action against two Deloitte & Touche LLP accountants for aiding Adelphia Communications Corp.’s accounting fraud in 2000, AP reported.

William Caswell agreed to settle the case by being barred for at least two years from auditing a public company, according to AP. He neither admitted nor denied the allegations.

The SEC is seeking an injunction against Gregory Dearlove and restitution to investors, with the case to be heard by an administrative law judge at the agency, according to AP. Dearlove’s attorney, Joseph Sedita, disputed the allegations and said his client would contest them.

D&T agreed in April to pay $50 million to settle charges that it failed to detect the massive accounting fraud that sent the MSO into bankruptcy.