The Fraud Factor by Mathias K. Kopetzky Essay Example | Topics and Well Written Essays - 1000 words

The Fraud Factor by Mathias K. Kopetzky - Essay ExampleLeary, on the other hand, had a unsure personality. These two future business associates met at an organization referred to as CCC Computer Corp, where Leary was the manager at the technical support and assembling center and Kearns was a illustrious and store computer. These two were very adroit salespeople who often delivered more sales that the company would really be able to sale. The two worked for CCC for umteen old age, but later Kearns quit the job out-of-pocket to low pay, and he decided to start his testify business ventures. His planned to call his new business da Gamma Computer Inc. and with the help of Simon, he hoped to attractor all customers to his new founded business (Wells 115). From the author, we learn that this new business showed tremendous growth in quite a a short time interval. This was extremely easy for it to achieve since Herbert had learned enough while at CCC Company, hence he would easily a pply business practices for all clients. plunk for Savings Bank, cardinal of the largest financial corporations in the country supported Gamma in this corporation. Such help is also historic as it enhances the market segment of the weaker company since people argon always pulled towards a company that has noteworthy performance. From the author, we learn that Second Saving supported Gamma in a variety of ways. ... The article reveals that the Netherlands retentivity Company, an Amsterdam based company proposed to purchase 100% of the stock of Gamma. At this time, gamma had sales of around $100million. This made Herbert Kearns a very ecstatic man since this had been his lifelong dream to be wealthy at aged 45. The brood required that Herbert and Simon had to stay on with the new buyers for a period of three years after the sale, and they would be able to cash in if at all a third of their acquisition proceeded, and the last outder was to be earned through a three year period of business success. We are told that Simon resigned a few weeks later due to family reasons, which as the author reveals later was a farce. This was astonishing since it went against the requirements of the deal they had made i.e. he forfeited two-thirds of sales of the companys price since he did not remain for the stipulated period. Later, we see that receivables of the company being sold in unclear circumstances, albeit the opposition of Jim Muller, the account representative of Gamma. However, octad weeks after, Gamma again bought all receivables and it pledged these receivables to Second savings for purposes of financing. Therefore, the situation reverted to normal in that Second savings exhibited outstanding credit that had receivables of Gamma Computer. This happened in March, and by October of that year, Gamma was declared bankrupt due to its inability to clear its invoices within the required time despite the company has increased sales. The collapse of Gamma shocked Seco nd Savings bank as it was always unaware of the financial difficulties of its client.