According to Cathrine Henchek, Bre-X was (Henchek) “a professionally managed Canadian company, an "Indonesian shadow company operated by Felderhof and his technical team," and "the promotional and marketing machine operated by David Walsh from Calgary or his beachfront house in Nassau." Basically, the company was manged and owned by Canadian David Walsh and the gold mining land that was involved was situated in Indonesia. This was tested for gold and rendered very positive results. The way this result was obtained was by tainting the land in question with gold shavings or small amounts of gold to yield positive results. Then this tainted result was leaked so that potential investors bought the stock for the company and the price of the stock increased. Additionally, land ownership disputes were also promoted to further deceit potential investors that the land must be worth something that people are disputing over it. Finally, before the fraud was exposed, David Walsh and Felderhof sold their investments in the company and made millions of dollars. It after the scam was exposed that the stock plummeted and people lost millions of dollars. According to Daniel Lawrence, (Lawrence), “About C$3bn in investors ' money was lost in the scandal.” Many people were
Cited: Daina Lawrence, in Ottawa. "Acquittal of Geologist Ends Bre-X Case." FT.com (2007): 1. ProQuest. Web. 26 Jan. 2014. Henchek, Catherine F. "Bre-X: The Lure of False Gold." Engineering and Mining Journal 199.6 (1998): 42. ProQuest. Web. 26 Jan. 2014. Unknown. Dictionary.com Unabridged. Random House, Inc. Unknown, 25 January 2014.