Defense Expert Witness: No Fraud in Stanford Int'l Bank's Annual Reports
by: Andrew Schneider, February 24, 2012 4:02:00 am
Defense Attorney Ali Fazel picked up his questioning of Morris Hollander, a CPA with fifty years of professional experience.
Hollander testified that, in his opinion, Stanford International Bank’s annual reports contained no evidence of fraudulent financial reporting. He also specified the bank’s use of international financial reporting standards, or IFRS, was appropriate given its position as an Antiguan-based company.
On cross examination, Hollander admitted that he had no certification in IFRS. Government attorney Andrew Warren also established multiple inconsistencies in Hollander’s testimony regarding the date the bank switched from U.S. to international accounting standards.
The date of the switch is significant, as the defense is arguing the bank’s use of IFRS freed it from some of the reporting requirements it would have had to follow under U.S. accounting standards.