I. The issue is misquoting the experts answers,and taking answers out of context, may be because not paying enough attention/time? Mitch comments( from the link you provided): "A modifier should be as close as possible to what it's modifying, but it need not be adjacent to what it modifies. Reg...

Prepositional phrases can act as a adjectival modifiers in which case they modify nouns. They can also modify verbs in which case they are adverbial. So it depends on the phrase whether its modifying noun or not. follow the link "http://www.beatthegmat.com/prepositional-phrases-modifier-doubt-t...

http://www.urch.com/forums/gmat-sentenc ... -self.html


I am not convinced but we have to accept it, I guess.

Even the comma use of However looks wrong.

"By failing to honor" --> indicating how a bank engaged in deceptive practice ; seems more like prepositional(+ adverbial) modifier. It may very well modify "accused" thus giving a illogical meaning. For the answer to be correct, it appears its modifying the phrase "engaging...

IMO-C;
D- slightly changes the meaning;

IMO -A; sounds more idiomatic;

Your example don't have 'whether' and is slightly different.
You are not talking about whether he should catch the fish(or not). You simply expected that he would catch the fish and he did.

IMO -A