The Office of Thrift Supervision has ordered a New Orleans accounting firm to pay Eureka Homestead Society $300,000.
The agency charged that Roth, Murphy, Sanford & Co.'s audit reports described the New Orleans thrift's books and records as accurate when in fact they were not.
In 1993, OTS examiners found that Eureka Homestead president Paul D. Clayton had engaged in unauthorized securities trading every year from 1987 on. In March, Mr. Clayton was banned from banking and paid $75,000 in restitution to the thrift.
His actions resulted in significant unrecognized losses for the thrift, but none of the audits done by Roth, Murphy disclosed the unauthorized trading.
Murphy, Roth did not admit or deny guilt in agreeing to pay the restitution.