Fraud Case Analysis: Facts, Fraudster, Victims, Discovery and Outcomes

This case analysis discusses the fraud committed by Mr. Thow, the fraudster, who misguides investors and borrows credit amount from companies. The victims of this fraud are from different countries. The article also highlights the discovery and outcomes of the case.

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Fraud Case Analysis

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Table of Contents
A. Facts of the case:......................................................................................................................3
1. The Fraud:.............................................................................................................................3
2. The Fraudster:.......................................................................................................................4
3. The Victims:.........................................................................................................................4
4. Discovery and outcomes:......................................................................................................4
References:......................................................................................................................................6

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A. Facts of the case:
Fraud is an unlawful activity which is done by an individual for the wrong intention. In other
words fraud can be defined as a civil or criminal wrong. In the given case Mr. Thow is the
fraudster who did the fraud. From the case it was found that Mr. Thow did many frauds like; this
man traded on the basis of personal relation that’s why there was no legal proof of the trade, he
misguided investors by saying that NCBJ issues its preferred shares to the family and friends
only, and he was also involved in nonexistent investment schemes. There are mainly four types
of fraud such as; Financial statement fraud, Skimming of cash, Asset misappropriation and
Misuse of company assets (Murphy and Dacin, 2011). According to the Canadian criminal code
section 380 Mr. Thow is guilty because he had done fraud with the creditors and investors. The
victims who affected from this fraud were the creditors of different countries who provided loan
to Mr. Thow and some of these companies are; Berkshire investment, National commercial bank
of Jamaica etc. and the customers and investors of his company also affected by this fraud who
are the indirect victims of the fraud. The fraud was started in 2003 and from then it was
continued till 2005 and in July 2005 someone filed a petition in the court for the bankruptcy
order of Mr. Thow.
1. The Fraud:
Mr. Thow did fraud with the investors by misguiding them about the investments and he also did
fraud with the companies of different countries by borrowing credit amount from them
(Dimmock, S. G., Gerken, W. C., and Grahm, N. P., et al., 2015). In 1988 some complaints
received by the organization against Mr. Thow in which they informed about the fraud of Mr.
Thow. Mr. Thow done many agreements with his known and lend money from the relatives on
the basis of personal relations that’s why there were no legal proof of those agreements. He also

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used is private own companies to process the investment funds and by misguiding the investors
he did fraud of approx $8,000,000.
2. The Fraudster:
Mr. Thow is the fraudster who did fraud with the investors and with the other companies of
various countries. Mr. Thow started his fraud in 2003 and he continued this fraud till 2005. In
March 1st, 2010 Mr. Thow found guilty according to the court. This decision was made on the
basis of the file of the facts which the council provided to the court. The only reason why Mr.
Thow did this fraud was to earn more money in indirect way. To save himself from the strict
action of court he filed a notice to change the name in the notice and suggested that the name in
the notice should be Wolrige Mahon Limited instead of Mr. Thow.
3. The Victims:
The victims are the individuals and organizations which were affected by the fraud of Mr. Thow.
Mr. Thow borrowed money from many creditors and he also did fraud with the companies
(Button, M., Tapley, J. and Lewis, C. et al., 2013). The victims of this fraud are from different
countries like; Sidney, Victoria, Columbia, Canada, Las Vegas, Palm spring etc. So the investors
and companies of these countries are the victims of this fraud.
4. Discovery and outcomes:
From the discussion it was found that in 1988 some complaints received by the organization
against Mr. Thow but Mr. Thow handled them in his own way. That was the time where it was
needed to take serious decisions about the complaints but nothing was done on the behalf of the
organization. Along with this, Mr. Thow done many agreements with his known and lend money
from the relatives on the basis of personal relations that’s why there were no legal proof of those
agreements. He also used is private own companies to process the investment funds and by

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misguiding the investors he did fraud of approx $8,000,000. Along with this, it can be
recommended that it is very important for every company to promote a culture which can easily
detect the unlawful activities and fraud activities in the organization. By this effective
implementation of culture the organization can improve relation with customers and investors. In
addition to this, from the above discussion it can be concluded that as per the decision of the
court Mr. Thow was guilty and he did fraud with the companies and with the investors. Along
with this it can be concluded that there are some actions that should be taken by the investors to
safeguard them from these kinds of frauds.

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References:
Button, M., Tapley, J., & Lewis, C. (2013). The ‘fraud justice network’and the infra-structure of
support for individual fraud victims in England and Wales. Criminology & Criminal
Justice, 13(1), 37-61.
Dimmock, S. G., Gerken, W. C., & Grahm, N. P. (2015). Is Fraud Contagious? Career Networks
and Fraud by Financial advisers. Career Networks and Fraud by Financial Advisors.
Murphy, P.R. and Dacin, M.T. (2011). Psychological pathways to fraud: Understanding and
preventing fraud in organizations. Journal of business ethics, 101(4), pp.601-618.