Page 10 - Fake Ruby Teaching guide

Greenwood approved Wrekin’s accounts to December 31, 2007,
which included the gem as an asset worth £11 million without

checking the reliability or authenticity of the Italian valuation report.
By including the gem as an £11 million asset in the accounts, Wrekin
gave the impression that it had a financial surplus of £6.3 million,

whereas its true position was an insolvent one. This was Fraud
perpetrated to hide that it was a company on life support and had

been acquired at zero cost.

FRAUD 2: A total of £1,285,136 was embezzled from Wrekin

Construction by Unwin. Unwin’s motivation for taking the money was
probably his feeling that the company was failing and had decided to

syphon off funds to his other companies. Furthermore, he already
had a track record of failed or liquidated companies so clearly knew
the ins-and-outs of a failing company. In addition the phony

purchases helped reduce taxable income by £1,285,136. Part of the
motivation for this fraud was therefore tax evasion.

It is noticeable that the Unwins gave up their directorships in the

month prior to the liquidation.