Miami Jury Finds BDO International Not Guilty – Huge Implications

We recently blogged on the recent ongoing trial on BDO International vs. Banco Espirito Santo in Miami, Florida with a jury in session to decide on the issue whether BDO Seidman, the US country firm, was an agent of BDO International, and whether the global umbrella firm should hold financial responsibility for the liabilities of the US firm...

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BDO Seidman Vs Banco Espirito Case - Trial Begins Tomorrow in Florida Court

BDO Seidman Vs Banco Espirito Case - Trial Begins Tomorrow in Florida Court

In August of 2007, we had blogged about a large $521 million financial judgment against BDO Seidman in its audit of Banco Espirito Santo of Portugal. At that time, we said,

“Banco Espirito Santo claimed it partnered with Bankest Capital to form E.S. Bankest in late 1990s relying on (BDO Seidman's) faulty audits that Bankest Capital's income had nearly tripled from 1995 to 1996. The bank also relied on later audits from BDO Seidman, which certified audits for E.S. Bankest accounts totaling some $225 million, of which only $5 million represented legitimate income.The bank is understandably happy with this verdict, but BDO Seidman will appeal it vigorously, by posting a $50 million bail. As expected, the firm will argue that senior management at Banco Espirito Santo was aware of this fraud and was also complicit.”...


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