Rupert Thorndike Murder Investigation Case Analysis

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

2. 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

3. 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

4. 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

5. 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

6. 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. Rupert Thorndike Murder Investigation Case Analysis

7. 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

8. 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

9. Investigative Analysis • Before and after analysis of Debentures, Stock, and Notes: Rupert Thorndike Murder Investigation Case Analysis

10. Investigative Analysis - Stock • Before, after, and gain of stock holdings: Rupert Thorndike Murder Investigation Case Analysis

11. Investigative Analysis - Notes • Before, after, and gain of notes holdings: Rupert Thorndike Murder Investigation Case Analysis

12. Investigative Analysis - Debentures • Before, after, and gain of debentures: Rupert Thorndike Murder Investigation Case Analysis

13. Investigative Analysis - Gain • Debentures, stock, notes, and totals of gains: Rupert Thorndike Murder Investigation Case Analysis

14. 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

15. 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