Sunday, July 9th, 2006

How Fraud Occurs- Disclosure Fraud (Part 6)

Overall Misrepresentation
( In the case of Bre-X Minerals )
This is mainly in the form of Disclosure Frauds.There are three (3) categories of disclosure frauds which comprises the following:

  • Overall misrepresentations about the nature of the company or its products, usually made through news reports, interviews, annual reports, and elsewhere
  • Misrepresentations in the management discussions and other non-financial statement sections of annual reports, 10-Ks, 10-Qs, and other reports
  • Misrepresentations in the footnotes to the financial statements

Leave a Reply