Wikibooks: Professionalism/Michael de Guzman and the Bre-X Scandal

• Format: Book
• Language: English
• Subjects: Northwest Territories
• Online Access: https://en.wikibooks.org/wiki/Professionalism/Michael_de_Guzman_and_the_Bre-X_Scandal

=Introduction= This chapter explores the 1997 Bre X gold mining fraud. We examine the enabling forces around the scandal and analyze Michael De Guzman s specific cover up strategy. Participants include Bre X management investors the Indonesian Government Freeport McMoRan Busang villagers and the Ontario Securities Commission. We discuss evident decision traps that are applicable across industries and professionals. =Timeline of Events= =Team Formation= In 1988 David Walsh founded Bre X Minerals Ltd out of his basement in Calgary Canada. Lane McNamara et al. v. Bre X Minerals Ltd. (1997 July) Civil Action No. 597CV159. United States District Court for the Eastern District of Texas. Retrieved May 8th from http //securities.stanford.edu/filings documents/1012/BXMNF97/1997725 r05c 97159.pdf Initially focused on diamond expeditions in the Northwest Territories Bre X found little success in its first years of operations. After several failed expeditions Walsh filed for personal bankruptcy in 1991. Behar R. (1997 June 9) Jungle Fever The Bre X Saga is the Greatest Gold Scam Ever. But to Understand the Enormity of the Fraud You Had to Be There. Our Man in Borneo Tells his Story. Retrieved May 8th from http //archive.fortune.com/magazines/fortune/fortune archive/1997/06/09/227519/index.htm To put some romance into Bre X Walsh shifted his company s focus to foreign gold expeditions. He reached out to John Felderhof a geologist famous for discovering the largest gold mine in Papua New Guinea and together they targeted the jungles of Indonesia. Stephenson A. and Seskus T. (2017 January 26) Behind ‘Gold’ The real story of Bre X proves life is stranger than fiction. Retrieved May 8th from http //www.calgarysun.com/2017/01/26/behind gold the real life story of bre x proves life is stranger than fiction Felderhof was named General Manager of Bre X s Indonesian exploration and brought in Michael De Guzman a Filipino geologist and long time friend. Following De Guzman s and Felderhof s guidance Walsh purchased land in Busang ...