"Schwab would like everyone to think it doesn't have conflicts, but that's not totally true, " says Douglas Schulz, author of Brokerage Fraud and a plaintiffs' witness in securities trials.

FORBES: Holier Than Whom?

As such, the Respondents may have taken the position that Medical Capital perpetrated a fraud on the market as a whole, and that the brokerage firm and its registered person were similarly duped by the falsehoods and misrepresentations.

FORBES: Public Customer Wins Medical Capital Notes Arbitration

It was that fraud that led Congress to authorize the oversight board to review audits of brokerage firms in the first place.

FORBES: The Bean Counters Look the Other Way at Fraud

Already bidders are lining up for parts or all of the futures brokerage, which sought bankruptcy protection Monday just one week after its former chief executive was charged with fraud in an unfolding accounting scandal.

FORBES: Magazine Article