PracticeAccounting FirmsBDO sued for $10bn by investors over Stanford audits

BDO sued for $10bn by investors over Stanford audits

Claim comes in a Dallas court, alleging BDO should have spotted the fraud during its audits

A $10.7BN (£6.5bn) claim has been made against the US arm of BDO over its role as auditor of Allen Stanford’s business.

The claim, made by Stanford investors in a Dallas court, said that BDO gave Stanford’s business unqualified audit opinions on the business’ financial statements, “despite the pervasive fraud”, reported Bloomberg.

The claim also alleges that four BDO executives helped a Stanford-backed team assist Antiguan authorities overhaul banking regulation, alleging it helped Stanford commit fraud.

A BDO spokesman said the firm had not received the complaint, and its late natures “reflects a transparent understanding that the allegations lack merit”.
Stanford denies criminal fraud charges, and is scheduled for trial in September.

BDO recently settled a long-running lawsuit over its accounting role with Bankest, a joint venture of client Banco Espirito.

 

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