Stout, under the guidance of external counsel, was retained by board members of an international products and services supplier in the healthcare market to perform an internal investigation of various vendor arrangements that a formerly employed procurement manager had designed.
Stout performed various procedures, including the review of the structure of the arrangements and associated invoices and payments and the analysis of other detailed accounting data extracted from the company’s ERP and financial systems, to quantify amounts that were potentially paid as a premium to market price over a nine year time period. During the time of the investigation, several additional vendors were uncovered with similar unusual arrangements with the company, and were also subsequently reviewed and analyzed.
Due to the unique structure of these arrangements, Stout also performed detailed background checks of the former employee, the former employee's close associations, and the principal owners of the vendor entities. These included the research of publicly available documents, recordings, and social media.