The first-named Defendants, Moore Stephens, were, for the years 1996, 1997 and 1998, the auditors of the Claimant company ("S&R"). S&R alleges that in each year the audits were conducted negligently. The claim is for USD 173.6 million. There is an allegation of "shutting eyes" fraud in relation to the 1998 audit but that, like negligence, is strenuously denied and is of no relevance to the present issues. The damage claimed arises from a letter of credit fraud committed against banks. The fraud consisted of the presentation by S&R of false documents to the Banks, the receipt of funds by S&R and the payment away of those funds to other parties to the fraud. The documents were shams purporting to reflect a commercial transaction which had not occurred. The claim asserts that Moore Stephens should, by one route or another, have "blown the whistle" bringing the fraud to an end. S&R was owned, controlled and managed by a Mr Stojevic. He was the person who committed the fraud and, with S&R, was found liable for it in relation to the major losing Bank by Toulson J in 2002 in a decision entitled Komercni Banka AS v. Stone and Rolls Ltd and Another [2002] EWHC 2263(Comm). "Another" was Mr Stojevic.

http://www.bailii.org/ew/cases/EWHC/Comm/2007/1826.html