A major scandal has recently occurred in the financial sector of Hungary when the Hungarian Financial Bank serving as the supervisory authority of the financial sector revealed that a brokerage firm present on the market for some 25 years has sold to the public fictitious (non-existent) bonds. The amount of clients and bonds and the time span make the scandal the largest in Hungary. Such bonds were issued and sold since 2007, the total amount exceeds HUF 150 billion (EUR 500 million). A central question was whether Hungary's Investor Protection Fund (BEVA) has a legal obligation to compensate the clients of the brokerage firm. Law Office of Gárdos Füredi Mosonyi Tomori advised BEVA on this issue. The complexity of the situation arose from the fact that the basic principle of investor protection is that the protection does not cover the default of the issuer, but in the given case real and fictitious bonds could often not be distinguished. Ultimately BEVA decided by majority vote to compensate also investors holding real bonds.