Page 9 - Fake Ruby CS

The creditors report said:

"It has been confirmed that the valuation relied upon in the year
ending 31st December 2007 statutory accounts of Wrekin
Construction Co Ltd (WCC), purportedly issued by the Instituto

Gemmologico Italiano is a forged document.”

"The source of the forgery is not known. The gem had been

included as an £11m current asset in WCC's balance sheet."

It added:

"At this time it is not possible to place a value on the uncut stone."

Unwin claimed he had been the victim of a third party valuation fraud. He said:
"I believed it [the stone] to be worth a lot more when I bought it."

The investigations by the Insolvency Service also found that in the weeks before

the gem was transferred to Wrekin, Unwin acknowledged in a meeting with the
company’s former auditors there were uncertainties about the gem’s value. It
also said Mr Ibbotson, Wrekin Construction’s finance director, was aware of

those uncertainties, but told the company’s new auditors that £11m was a
genuine market value.

2007, Tamar switched its auditors from the Big Four practice, KPMG to Ashgates

Corporate Services, a small Derby based accountancy group after Tamar bought
Wrekin. Ashgates accepted the gem’s value of £11 million.

Insolvency Service spokesman Pabitar Powar said:

"The purchase of an uncut ruby gemstone by Wrekin
(Construction) was extraordinary and questionable.

"It is clear that the gemstone was included in the accounts to
portray Wrekin's financial position as a sound one, whereas its true
position was the exact opposite."

Unwin was also found to make sham payments of £768,177 and £516,959 from
Wrekin to two other companies controlled by him Britannia Management

Services and Equatrek (UK) knowing the construction firm was under severe
financial pressure and unable to pay its debts.