Deloitte & Touche agreed to pay $32 million to settle lawsuits over its audits for the now-defunct Manhattan Investment Fund, a hedge fund that cost its investors millions when it collapsed four years ago.

The Securities and Exchange Commission won a $20 million judgment against Berger, who allegedly created fake account statements to hide losses and overstate the fund’s value....investors led by Cromer Finance Ltd. alleged that Deloitte "disregarded numerous red flags that should have alerted it to the fraud, and in consequence, Deloitte's 'audits' amounted to no audits at all."