Jury Selection Begins Over Auditor’s Role In Bankest Fraud

Law360, New York (January 16, 2007, 12:00 AM EST) -- Jury selection began Tuesday in a case that will decide who was at fault in E.S. Bankest’s spectacular collapse.

On one side is Banco Espirito Santo, E.S. Bankest’s parent company, which originally filed the lawsuit before the Miami-Dade Circuit Court in May 2004. In its complaint, Espirito Santo accused Bankest’s accounting firm, BDO Seidman LLP, of negligence in failing to detect $170 million worth of fraud.

BDO Seidman, which audited E.S. Bankest from 1998 to 2002, rubber-stamped phony financial statements every year, according to the complaint....
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