Rupert Thorndike Murder Investigation Case Analysis Vegetron Project Analysis Rupert Thorndike Murder Investigation Case Analysis Forensic Accounting Team: Bruce Kastner George Tolle Obie Evans S. Darren Hamilton Zachary Gooch

Case Details Victim is sixty-two year old Rupert Thorndike, CEO of Thorndike Oil. Mr. Thorndike was discovered by one of the estate maids deceased in his private quarters. The apparent cause of death is a single gunshot wound to the head. Initial scene analysis revealed that the doors and windows of the home were secured (bolted from the inside) with no signs of forced entry. The weapon used in the murder has not been located. Rupert Thorndike Murder Investigation Case Analysis

Case Details Cont. After careful analysis of the crime scene, available evidence, and interview material there is no apparent motive. Lead investigator Roger Morse identified a link to financial gain as a possible motive. Forensic accounting analysis was requested to further investigate this lead. There was a bid by a competitor to purchase the all of the companies common stock that was rejected by Mr. Thorndike. The evidence and financial standings of all involved parties will be reviewed and presented along with all findings and a conclusion to the investigation. Rupert Thorndike Murder Investigation Case Analysis

Thorndike Oil Capital Structure 5% debentures: $250 million face value. The bonds mature in 10 years and offer a yield of 12%. Stock: 30 Million shares, which closed at $9 a share the day before the murder. 10% subordinated convertible notes: The notes mature in one year and are convertible at any time at a conversion ratio of 110. (The day before the murder these notes were priced at 5% more than their conversion value.) Rupert Thorndike Murder Investigation Case Analysis

Thorndike Oil Buyout Bid The day prior to the murder fellow oil entrepreneur T. Spoone Dickens made an offer to buy all of Thorndike Oils common stock for $10 a share. This offer was rejected by Mr. Thorndike although the resulting purchase would have benefited Thorndike shareholders significantly . Three prominent shareholders who happened to be relatives of Mr. Thorndike, bitterly disagreed with his rejection of the proposal. These three shareholders are: Doris (niece) Patsy (niece) John (nephew) Rupert Thorndike Murder Investigation Case Analysis

5% Debentures (face value) 10% Convertible notes (face value) Suspect Analysis The three relatives all have a financial motive to have committed the crime. Interviews revealed that all three had bitterly disagreed with their uncles decision. The below chart shows the stakes that each shareholder had in the company at the time of the crime. Suspect 5% Debentures (face value) Shares of stock 10% Convertible notes (face value) Doris $4 million 1.2 million $0 million Patsy 1.5 3 John 0.5 5 Rupert Thorndike Murder Investigation Case Analysis

Suspect Analysis Cont. All debt issued by Thorndike Oil would be paid off at face value if the proposed offer was accepted. Holders of the convertible notes could choose to convert and tender their shares to Mr. Dickens. Mr. Thorndike's shares would go to a charitable foundation formed to advance the study of Financial engineering and its crucial role in world peace and progress. The managers of the charitable foundations endowment were not expected to oppose the takeover. Rupert Thorndike Murder Investigation Case Analysis

Investigative Theory Murder was financially motivated due to the rejection of Dickens takeover offer rejection Forensic accounting will show who stood to gain the most from the success of the Dickens offer. The investigative analysis will focus on the three identified suspects and their possible gains from the offer. Rupert Thorndike Murder Investigation Case Analysis

Investigative Analysis Before and after analysis of Debentures, Stock, and Notes: Holdings Before After Debentures 151.12 = 60.4% of 250 250 or 39.5% increase Stock 30 x 9 = $270 million 30 x 10 = $300 million Notes 110 x 9 = 990 x 1.05 = $1039.50 110 x 10 = $1,100 Rupert Thorndike Murder Investigation Case Analysis

Investigative Analysis - Stock Before, after, and gain of stock holdings: Suspect Before After Gain Doris 1.2 x 9 = 10.8 million 1.2 x 10 = 12 million 1.2 Patsy 1.5 x 9 = 13.5 1.5 x 10 = 15 1.5 John .5 x 9 = 4.5 .5 x 10 =5 0.5 Rupert Thorndike Murder Investigation Case Analysis

Investigative Analysis - Notes Before, after, and gain of notes holdings: Suspect Before After Gain Doris Patsy 3 x 1.0395 = 3.1185 3 x 1.1 = 3.3 0.1815 John 5 x 1.0395 = 5.1975 5 x 1.1 = 5.5 0.3025 Rupert Thorndike Murder Investigation Case Analysis

Investigative Analysis - Debentures Before, after, and gain of debentures: Suspect Before After Gain Doris 4 4 x 1.395 = 5.58 1.58 Patsy John Rupert Thorndike Murder Investigation Case Analysis

Investigative Analysis - Gain Debentures, stock, notes, and totals of gains: Suspect Debentures Stock Notes Total Doris 1.58 1.2 2.78 Patsy 1.5 0.1815 1.6815 John 0.5 0.3025 0.8025 Rupert Thorndike Murder Investigation Case Analysis

Recommendation Based on the evidence collected and the financial statements analyzed the below recommendations are approved by this team: 1) The motive should be considered financial in nature. 2) Barring any additional evidence it is clear that the three relatives mentioned in this analysis have the most to gain from the death of Mr. Thorndike. 3) The investigation should be focused on Doris as a prime suspect in the death of her uncle. Rupert Thorndike Murder Investigation Case Analysis

Conclusion The facts of this case along with the expert analysis of this team paint a clear picture of what happened to Mr. Thorndike. As is the case in many investigations of this type, money is the motivating factor in this crime. When the financial statements were analyzed and those who stood to profit the most from the death were evaluated one stood out from the rest. The prime suspect in this case is Mr. Thorndike's niece Doris. Rupert Thorndike Murder Investigation Case Analysis