Page 8 - Fake Ruby Teaching guide
P. 8
alleviated the financial pressure on the company
especially as it was an asset that was not essential to
operating procedures or contributing to output.
WHY WAS THE GEM NOT REVALUED?
Surely it would not have cost that much to have sent the gem to the Instituto
Gemmologico to revalue. This could have been done by Unwin, RBS or the
Auditors – ambiguity solved.
WHY WAS THE GEM NOT SOLD?
Answer – it was a fraud where the £11 million
attributed value was an exaggeration supported by bogus
documentation.
On paper it looked good and formed the basis for
acquiring ownership of Wrekin Construction but it could
never be crystallised into solid cash. The company became
a more creditworthy partner for suppliers, customers and
its bank, RBS. Therefore, its value lay only in its ability, as
an entry in the accounts, to colour financial strength and
allow easier access to fund raising.
