The forensic accountants in Marcellus have to work hard to identify the latest greatest tricks being used by Indian promoters to steal money from their lenders and shareholders.
However, as crooks across the world have shown for centuries, stealing money is not very difficult – sometimes it is just easy as telling a buyer that you have nickel to sell and once the buyer pays up, you give him a bag of stones instead of nickel. That’s what seems to have happened at the London Metal Exchange:
“The London Metal Exchange has found bags full of stones at one of its warehouses instead of the nickel they were supposed to contain in the latest drama to hit the scandal-stricken metals market.
The exchange said in a notice to the market on Friday that it had “received information that a number of physical nickel shipments, out of one specific facility of an LME-licensed warehouse operator, have been subject to such irregularities”. The supposed nickel consignments were actually filled with stone, said a person familiar with the matter.
The LME added that the irregularities in the bagged nickel were “evident, from among other things, by the weight of the bags…
Following the discovery, the LME asked the warehouse operator to conduct an inspection, which found nine cases of missing nickel, amounting to 54 tonnes of material worth $1.3mn”
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Note: the above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India as a provider of Portfolio Management Services. Marcellus Investment Managers is also regulated in the United States as an Investment Advisor.
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