In a three-year-old legal fray that resulted in a mistrial in March, a jury here has found global audit firm BDO Seidman guilty for its failure to detect audit fraud that prompted a Florida financial services company to declare bankruptcy. The verdict stems from a suit filed in 2004 by Banco Espirito Santo SA, a Portuguese bank that charged BDO with failing to uncover some $170 million of fraud at financial services firm E.S. Bankest, a former partner of the bank.
Several former Bankest executives have subsequently been sent to prison following their convictions on criminal charges related to the fraud.
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