1. 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

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 (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. 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

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:
Holdings
Before
After
Debentures
= 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 = $
110 x 10 = $1,100
Rupert Thorndike Murder Investigation Case Analysis

10. 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

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

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

13. 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

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