He also denied ever stealing from the union, asserting that his embezzlement conviction was the result of "bookkeeping errors."
Adding bookkeeping errors and other mistakes found by the audit, the errors totaled about $1 billion.
Graham cited that the only problem came from a bookkeeping error.
But whether they are missing or are figments created by a bookkeeping error cannot be determined.
Mr. Critchley said this was simply one bookkeeping error in account books that have "700 or 800 transactions."
Nonetheless, the court ruled that a mere "bookkeeping error" was not sufficient grounds to impose the penalty.
Salomon said its losses were greater for the quarter and the year than previously reported because of a bookkeeping error.
The bookkeeping errors creep in as millions of transactions storm into the computer networks.
City officials insist that the suit is more about bookkeeping errors than fraud.
These are often more than small bookkeeping errors.