funds missing fraud, page-3

Sydney - Tuesday - September 16: (RWE Aust Business News) -
Argonaut Resources (ASX:ARE) has become aware of irregularities in its
financial records which are consistent with fraudulent misappropriation
of Argonaut funds.
At this stage the company believes the relevant transactions were
undertaken over at least three years to August 2008.
A misappropriation of funds will have resulted in a misallocation
of expenses in financial statements and as a result expenses may have
been overstated.
Argonaut has brought the irregularities to the attention of the
NSW Police and understands criminal charges have been laid.
Argonaut also understands that none of its directors have been
the subject of the police investigations, which are continuing.
Argonaut has engaged forensic accountants to determine the extent
of the fraud and the impact on the company.
To date the amount of funds involved is in the order of $2
million and may be as high as $2.6m.
Argonaut is also considering various avenues for recovering any
misappropriated funds.