Case Study: an investment bank settles a $250 million fraud claim with BDO

Investment Bank settles a $250 million fraud claim with BDO

An investment bank faced a major challenge when it discovered one of its brokers had sent fraudulent account statements to hundreds of investors, overvaluing their portfolios by approximately $250 million. The bank engaged BDO to help reconstruct the account activity and address one of the largest broker-dealer frauds in U.S. history.

BDO reconstructed account activity by analyzing paper records to identify fraudulent transactions and review falsified statements. This involved re-creating trading records for millions of transactions across hundreds of accounts. BDO's analysis allowed the bank's counsel to successfully negotiate settlements with the affected account holders and the SEC.