Over the years, we have very often discovered that things are not always what they appear to be.  Seemingly adequate collateral can turn out to be worthless putting a lender at serious risk.  We prevented this from happening when we were asked to audit frozen strawberries - collateral for a $15 million loan.

The strawberry collateral was used to make strawberry flavored syrup.  Although the berries were stored in Washington State, we felt that 3,000 miles is not far away when $15 million is at stake.  This decision took us on a journey we will never forget.  Not only were the berries in Washington, the warehouse was accessible only after traveling by plane, train, and bus, over bumpy, outdated roads best traveled on mule.

When we finally arrived, the strawberries were there as described.  However, something told us to take a few berries for testing at the FDA.  To our surprise, we received a call from the FBI, not the FDA, with lots of questions about the tested berries.  It seems the FDA found the berries to be tainted from being in storage too long and had become extremely toxic.  A small amount would be fatal if swallowed.  This is what got the attention of the FBI and our role in the poisoned berries.

Fortunately, no one was subjected to the poisoned berries, out client did not loan $15 million on the strawberry collateral, and, hopefully, the syrup manufacturer learned a lesson in inventory management.

What is the condition of your collateral?  If you need to be sure, Bourget & Associates, Inc. will put your mind at rest.