In October 2008, auditing firm Deloitte filed a shocking lawsuit against Thomas P. Flanagan, its Vice Chairman of Clients and Markets, for allegedly trading on inside information he received from audits and lying about it for years. Deloitte’s lawsuit against Flanagan, a 30-year partner in the firm, was filed in Chancery Court in Delaware and alleged that Flanagan betrayed his client’s trust and violated company policy by trading in securities of audit clients, including some of his own accounts.
Nearly four years later, the DOJ’s probe into Flanagan’s conduct was resolved this week when Flanagan pleaded guilty to one count of securities fraud. The DOJ announced on August 8 that Flanagan pleaded guilty to insider trading that resulted in illegal profits totaling approximately $420,000 for himself and at least $58,000 for one of his relatives.
