Fraud Examination: Case Study

Docurment4 - Word Lauren Reilly File Home nsert Design LayoutRefererces Mailings Review View Format Tell me whet you went to do Share In April 1997, Bre-X Minerals, a Canadian company, was supposedly one of the most valuable companies in the world. Bre-X had convinced numerous mining experts that they had rights to one of the largest gold deposits ever discovered. It was hailed as the mining find of the century The gold mine, located on a remote island in the East Kalimantan Province of Indonesia supposedly had so much gold that the actual price of gold on the open market dropped significantly due to the anticipation of an increased gold supply. Within a few months, thousands of Canadians-big-time investors, pension and mutual fund, managers and many small investors, including factory workers-got caught up in "Bre-X fever." The company's stock price shot from pennies to more than $250 per share before a 10-for-1 stock split was announced Thousands of investors believed they were on the verge of becoming millionaires The story took a sudden turn for the worse when Michael de Guzman, Bre-X's chief geologist and one of only a handful of company insiders entrusted with the mine's core samples, apparently committed suicide by jumping out the back of a helicopter. Guzman's suicide was reported around the time that an independent consulting firm reported that samples from the mine had been tampered with. The firm concluded that the core samples were made to appear to be rich in gold by adding a relatively small amount of gold to the samples. In essence, the firm concluded that Bre-X was a scam of epic proportions! The gold mine, located on a remote isiand inthe East Kaim My Text by Chegg Fraud Examinatic 5th Edition View all sol PERCENT INDUS CHANGE AVERA LIQUIDITY RATIOS Current ratio (current assets/current liabilities) 12/31/15 CHANGE Chegg riaht n 1.21 Page 1 of 2 0 words 12:51 PM 119/2017