In July 1987, Parker, director of far east operations, told Wiles that something was amiss, and in August Wiles travelled to Hong Kong and Singapore where he found a complete loss of control. The inventory count that fall showed the numbers had grown to $15 million, mostly in Colorado. A report was prepared to consider various solution, but Wiles suggested they continue hiding the problem and ordered all copies of the report be destroyed.
This led to the company's most infamous cover-up; the managers rented a second warehouse in Colorado where they personally packed 26,000 bricks into hard drive boxes and shipped them to Singapore in order to shore up the inventory count. After the count was complete, they recalled those serial numbers as defective units, but instead of writing them off, they checked them into inventory, along with other failed drives that had been returned.