Forensic Accounting Case Study November 9, 2019 postadmin Post in Uncategorized ACCT 738 Class 5 Homework Assignment Forensic Accounting Case Study Bags Medical Device Company (BMDC) The case has been developed to test your ability to use Microsoft Excel to analyze patterns and draw relationships. Provided: Company Overview paragraph. 2. Informational Interview with CEO Steve Flanders. 3. Completed Excel spreadsheet showing sales results and commissions. Assignment: A one page Summary of Findings Report that provides the following: a. Describe how the fraud was perpetuated and by whom? b. What data or information lead you to this conclusion? c. Quantify the amount of loss by BMDC. d. List three recommendations you would provide to BMDC to prevent this fraud from occurring in the future. Forensic Accounting Case Study Series — sponsored by Deloitte FAS LLP and the Deloitte Foundation Sales Commission Fraud – Bags Medical Device Company Case No. 2-1 Company Overview: Bags Medical Device Company (“BMDC” or “the Company”), based in Arlington, Virginia, sells medical devices to hospitals and doctors in private practices across the United States. BMDC was founded in 1998 by Steve Flanders who began selling the devices from his garage. Informational Interview with the CEO Steve Flanders: Question: Answer: How was the issue identified by the client? The issue was identified from an anonymous call into the whistleblower hotline on 1/12/12. Are there any further details regarding the allegation that has been provided to BMDC? Based on the call from the whistleblower hotline there is an alleged collusion amongst sales, legal and accounting to list additional sales members as secondary sales representatives on contract sales to allow for unmerited commission payments. What are the sales commissions related to? The sales commissions are related to a BMDC proprietary product. Can you explain the sales commission process? The sales commissions process is: Sales reps are responsible for meeting with the customers and collecting sales orders after an initial contract is established.For a contract to be established, a manager from the contracting department must approve the terms and conditions of the contract (price, discounts, rebates, etc.) Each contract lists the sales rep that is the primary company representative (receives 10% of the contract price). The contract also allows for a secondary sales rep (receives 5% of the contract price); this is someone who would have assisted in the sales process.Once it’s been approved, each contract is entered into the accounting system where the commissions are automatically calculated. This process is overseen by the accounting department. The accounting clerk is responsible for reconciling commissions paid to contract price. Once the information is reconciled and entered into the system, the contracting manager then reviews the contract entry and confirms that information was entered properly. It is not the responsibility of the accounting clerk to confirm that the salesmen are appropriately listed on the contract. Copyright © 2014 Deloitte Development LLC. All rights reserved. Forensic Accounting Case Study Series — sponsored by Deloitte FAS LLP and the Deloitte Foundation Sales Commission Fraud – Bags Medical Device Company Case No. 2-1 How has the recession affected sales? The company was hit hard by the recession and sales have been down the past couple of years but analysts have high hopes and have projected an 8% earnings growth this fiscal year. Are there any suspicions as to who may be involved? The Whistleblower identified 5 individuals who he believes is involved: Mitchel Bogart — Sales RepCarly McFinnigan — Accounting ClerkAmanda Smith — Sales RepWillie Johnson — Sales RepBarry McMillan — Contracting Manager Other Information Our group of 15 salesmen works really well together and they are all very friendly with one another. The exception is one individual who the CEO has told us is his star salesman. This person consistently is in the top 3 every year for commissions. While the individual occasionally collaborates as a secondary to other salesman’s efforts, he refuses to use secondary salesman on his primary sales.Mr. Flanders admitted that he puts a considerable amount of pressure on the sales force to meet and exceed established quotas. Your consulting firm, Rango Fraud Specialists, LLP has interviewed various BMDC employees including the five (5) individuals identified by the whistleblower to gather information (see below). Some of the information is purely speculative. Bear in mind that some of it came from the interview with Susie Sanders, who is known to be the office gossip queen. Mitchel Bogart Background Mitchel has been with BMDC for the last 7 years. He came on-board based on a recommendation from one of his former colleagues at another medical device company. He was known to have a lot of connections within some of distributors that handle BMDC’ products. He started off slowly in his first two years at BMDC due to a non-compete agreement with his former employer. In the beginning of his third year (2007) his sales started to climb and by the second half of the year he was beating out other sales reps. Personal History Mitchel grew up in an area that connected him with high level executives at medical device distributors. Most of his customers are old friends of his. There is a rumor going around the office that Mitchel likes to live above his means since he just bought a brand new porche. Copyright © 2014 Deloitte Development LLC. All rights reserved. Forensic Accounting Case Study Series — sponsored by Deloitte FAS LLP and the Deloitte Foundation Sales Commission Fraud – Bags Medical Device Company Case No. 2-1 Related Character(s) Willie — Mitchel’s wife and Willie’s soon to be ex-wife belong to the same knitting club. Carly McFinnagan Background Carly has been an accounting clerk at BMDC for almost 7 years. She is currently in the same position that she was hired into. Her main responsibility is to calculate the commission payments to each of the sales reps. In addition, she is responsible for confirming that the classification of the sales reps as primary or secondary is appropriate based on the contract information filled out by the contract department. Carly has been up for promotion to accounting manager for the last 3 years and has been passed over each time. Based on her understanding, the company informed her that they have not been able to identify anyone who can fill her current position. Her belief is that the company can’t find someone else to take this low paying job. Personal History Carly has been married for the last 15 years and lives in an affluent area near her job with her 3 boys. Her husband is a big time investment banker. Barry — Carly has been Barry’s neighbor for the last five years. Barry and her husband have become good friends over the years. Related Character(s) Amanda Smith Background Personal History Amanda has been with BMDC for the last 6 years. She started as a sales rep and has held the same position since then. Amanda was a top 5 salesperson in her first four years, but during the last two years, she has been in the bottom 5 in sales. Because she set the bar so high initially, management increased her sales quota. But during the last two years she has missed her sales quota and fears that if things don’t change soon she could be out of a job. Amanda is divorced and supports her two children along with her niece who has just moved in with her. Related Character(s) Barry McMillian — Longtime friend of Amanda’s since they attended the same college together. There is an office rumor that Willie and Amanda have been secretly dating since Willie and his wife separated last year. The company does not allow inter-office dating. Copyright © 2014 Deloitte Development LLC. All rights reserved. Forensic Accounting Case Study Series — sponsored by Deloitte FAS LLP and the Deloitte Foundation Sales Commission Fraud – Bags Medical Device Company Case No. 2-1 Willie Johnson Background Personal History Related Character(s) Willie has been with BMDC for 4 years. Previously, Willie worked for one of the leading pharmaceutical firms and worked in their sales department for 10 years. Because of his experience in sales, Willie has had an easy time meeting his quotas since he joined BMDC. Willie’s personal life is in disarray as he is going through his second divorce and it is rumored that he has a severe gambling problem. Mitchel — Mitchel’s wife and Willie’s soon to be ex-wife belong to the same knitting club. There is an office rumor that Willie and Amanda have been secretly dating since Willie and his wife separated last year. The company does not allow inter-office dating. Barry McMillian Background Barry has been with BMDC for about 8 years now. He started off in sales and has since moved into the contracting department. His role is to make sure the terms of the contract are within the company’s pre-established limits and that all of the relevant information (client name, price, discounts, rebates) are properly listed. In addition, he inputs the sales representative names on each contract and classifies each representative accordingly as the primary or secondary. Personal History Barry is happily married to his college sweetheart of 10 years and has 3 loving kids. He lives in a very affluent area near the office. Related Character(s) Amanda Smith — Long time friend of Barry’s since they attended the same college together. Bradley McFinnagan — Barry’s next door neighbor for the last 5 years and they have since become very good friends. Bradley is married to Carly McFinnagan. Copyright © 2014 Deloitte Development LLC. All rights reserved. Forensic Accounting Case Study Series – sponsored by Deloitte FAS LLP and the Deloitte Foundation Sales Commission Fraud – Bags Medical Device Company Case No. 2-1 Contracts by Year Primary Contract # Contract Year Contract Date Primary Sales Rep Secondary Sales Rep Contract Amount Secondary Total Commission Commission Commission 1 2008 1/4/2008 Inez Sanchez Fred Jones $37,419.00 $3,741.90 $1,870.95 $5,612.85 2 2008 1/7/2008 Brady Marshall No secondary sales rep $80,152.00 $8,015.20 $0.00 $8,015.20 3 2008 1/11/2008 Brady Marshall Laura Barber $58,643.00 $5,864.30 $2,932.15 $8,796.45 4 2008 1/12/2008 Mitchel Bogart No secondary sales rep $22,380.00 $2,238.00 $0.00 $2,238.00 5 2008 1/12/2008 Fred Jones Kyle Freeman $50,651.00 $5,065.10 $2,532.55 $7,597.65 6 2008 1/19/2008 Inez Sanchez No secondary sales rep $21,525.00 $2,152.50 $0.00 $2,152.50 $2,324.80 7 2008 1/21/2008 Fred Jones No secondary sales rep $23,248.00 $2,324.80 $0.00 8 2008 1/21/2008 Fred Jones No secondary sales rep $32,370.00 $3,237.00 $0.00 $3,237.00 9 2008 1/26/2008 Mark Esposito No secondary sales rep $18,633.00 $1,863.30 $0.00 $1,863.30 10 2008 1/27/2008 Mark Esposito No secondary sales rep $67,921.00 $6,792.10 $0.00 $6,792.10 11 2008 2/1/2008 Amanda Smith Ryan Leaf $19,740.00 $1,974.00 $987.00 $2,961.00 12 2008 2/1/2008 Brady Marshall No secondary sales rep $31,793.00 $3,179.30 $0.00 $3,179.30 13 2008 2/4/2008 Willie Johnson Kelly Thomas $14,066.00 $1,406.60 $703.30 $2,109.90 14 2008 2/8/2008 Mitchel Bogart No secondary sales rep $45,124.00 $4,512.40 $0.00 $4,512.40 15 2008 2/9/2008 Victoria Beckham Mark Esposito $21,758.00 $2,175.80 $1,087.90 $3,263.70 16 2008 2/11/2008 Amanda Smith No secondary sales rep $26,015.00 $2,601.50 $0.00 $2,601.50 17 2008 2/14/2008 Mitchel Bogart No secondary sales rep $76,558.00 $7,655.80 $0.00 $7,655.80 18 2008 2/16/2008 Fred Jones Inez Sanchez $56,844.00 $5,684.40 $2,842.20 $8,526.60 19 2008 2/17/2008 Mitchel Bogart No secondary sales rep $17,271.00 $1,727.10 $0.00 $1,727.10 20 2008 2/17/2008 Jason Wilts Fred Jones $52,008.00 $5,200.80 $2,600.40 $7,801.20 21 2008 2/18/2008 Brady Marshall Sandy McKnight $82,857.00 $8,285.70 $4,142.85 $12,428.55 22 2008 2/23/2008 Willie Johnson No secondary sales rep $0.00 $5,137.90 2008 2/27/2008 Fred Jones No secondary sales rep $51,379.00 $73,373.00 $5,137.90 23 $7,337.30 $0.00 $7,337.30 24 2008 3/3/2008 Laura Barber No secondary sales rep $40,063.00 $4,006.30 $0.00 $4,006.30 25 2008 3/3/2008 Amanda Smith Kyle Freeman $67,664.00 $6,766.40 $3,383.20 $10,149.60 26 2008 3/4/2008 Amanda Smith No secondary sales rep $26,844.00 $2,684.40 $0.00 $2,684.40 27 2008 3/5/2008 Inez Sanchez No secondary sales rep $28,259.00 $2,825.90 $0.00 $2,825.90 28 2008 3/8/2008 Mitchel Bogart No secondary sales rep $35,074.00 $3,507.40 $0.00 $3,507.40 29 2008 3/9/2008 Amanda Smith No secondary sales rep $10,232.00 $1,023.20 $0.00 $1,023.20 30 2008 3/11/2008 Jim Jackson Kyle Freeman $65,502.00 $6,550.20 $3,275.10 $9,825.30 31 2008 3/15/2008 Sandy McKnight Willie Johnson $26,898.00 $2,689.80 $1,344.90 $4,034.70 32 2008 3/16/2008 Kelly Thomas Kyle Freeman $69,088.00 $6,908.80 $3,454.40 $10,363.20 33 2008 3/25/2008 Fred Jones Victoria Beckham $41,013.00 $4,101.30 $2,050.65 $6,151.95 34 2008 3/28/2008 Kyle Freeman Sandy McKnight $22,429.00 $2,242.90 $1,121.45 $3,364.35 35 2008 3/30/2008 Ryan Leaf Sandy McKnight $83,210.00 $8,321.00 $4,160.50 $12,481.50 36 2008 3/31/2008 Sandy McKnight No secondary sales rep $34,289.00 $3,428.90 $0.00 $3,428.90 37 2008 4/1/2008 Mitchel Bogart No secondary sales rep $82,267.00 $8,226.70 $0.00 $8,226.70 38 2008 4/6/2008 Sandy McKnight No secondary sales rep $31,426.00 $3,142.60 $0.00 $3,142.60 39 2008 4/9/2008 Kelly Thomas Kyle Freeman $34,467.00 $3,446.70 $1,723.35 $5,170.05 40 2008 4/16/2008 Willie Johnson Mitchel Bogart $61,267.00 $6,126.70 $3,063.35 $9,190.05 41 2008 4/16/2008 Laura Barber Kelly Thomas $61,691.00 $6,169.10 $3,084.55 $9,253.65 42 2008 4/22/2008 Victoria Beckham No secondary sales rep $44,294.00 $4,429.40 $0.00 $4,429.40 43 2008 4/22/2008 Laura Barber Mark Esposito $55,337.00 $5,533.70 $2,766.85 $8,300.55 44 2008 4/24/2008 Fred Jones Inez Sanchez $20,913.00 $2,091.30 $1,045.65 $3,136.95 45 2008 4/25/2008 Jim Jackson No secondary sales rep $65,688.00 $6,568.80 $0.00 $6,568.80 46 2008 4/27/2008 Laura Barber Mitchel Bogart $30,523.00 $3,052.30 $1,526.15 $4,578.45 47 2008 4/28/2008 Willie Johnson Kelly Thomas $14,277.00 $1,427.70 $713.85 $2,141.55 48 2008 5/4/2008 Kyle Freeman No secondary sales rep $16,903.00 $1,690.30 $0.00 $1,690.30 49 2008 5/5/2008 Brady Marshall No secondary sales rep $58,262.00 $5,826.20 $0.00 $5,826.20 50 2008 5/5/2008 Mark Esposito Laura Barber $73,510.00 $7,351.00 $3,675.50 $11,026.50 51 2008 5/10/2008 Mitchel Bogart No secondary sales rep $25,631.00 $2,563.10 $0.00 $2,563.10 52 2008 5/10/2008 Willie Johnson No secondary sales rep $65,726.00 $6,572.60 $0.00 $6,572.60 53 2008 5/11/2008 Brady Marshall No secondary sales rep $65,565.00 $6,556.50 $0.00 $6,556.50 54 2008 5/13/2008 Fred Jones No secondary sales rep $41,766.00 $4,176.60 $0.00 $4,176.60 55 2008 5/14/2008 Inez Sanchez No secondary sales rep $18,904.00 $1,890.40 $0.00 $1,890.40 56 2008 5/15/2008 Inez Sanchez No secondary sales rep $84,147.00 $8,414.70 $0.00 $8,414.70 57 2008 5/19/2008 Sandy McKnight No secondary sales rep $33,972.00 $3,397.20 $0.00 $3,397.20 58 2008 5/22/2008 Kyle Freeman Sandy McKnight $52,315.00 $5,231.50 $2,615.75 $7,847.25 59 2008 5/23/2008 Willie Johnson Jim Jackson $11,341.00 $1,134.10 $567.05 $1,701.15 60 2008 5/24/2008 Jim Jackson No secondary sales rep $48,902.00 $4,890.20 $0.00 $4,890.20 61 2008 5/26/2008 Amanda Smith No secondary sales rep $24,389.00 $2,438.90 $0.00 $2,438.90 62 2008 5/27/2008 Mitchel Bogart No secondary sales rep $24,017.00 $2,401.70 $0.00 $2,401.70 63 2008 5/27/2008 Kelly Thomas No secondary sales rep $45,663.00 $4,566.30 $0.00 $4,566.30 64 2008 5/29/2008 Inez Sanchez No secondary sales rep $35,836.00 $3,583.60 $0.00 $3,583.60 65 2008 6/1/2008 Fred Jones Victoria Beckham $17,441.00 $1,744.10 $872.05 $2,616.15 66 2008 6/10/2008 Fred Jones Victoria Beckham $46,984.00 $4,698.40 $2,349.20 $7,047.60 Copyright © 2014 Deloitte Development LLC. All rights reserved. Forensic Accounting Case Study Series – sponsored by Deloitte FAS LLP and the Deloitte Foundation Sales Commission Fraud – Bags Medical Device Company Case No. 2-1 Contracts by Year Primary Contract # Contract Year Contract Date Primary Sales Rep Secondary Sales Rep Contract Amount Secondary Total Commission Commission Commission 67 2008 6/10/2008 Brady Marshall No secondary sales rep $54,709.00 $5,470.90 $0.00 $5,470.90 68 2008 6/11/2008 Fred Jones No secondary sales rep $42,392.00 $4,239.20 $0.00 $4,239.20 69 2008 6/11/2008 Mark Esposito Kyle Freeman $61,962.00 $6,196.20 $3,098.10 $9,294.30 70 2008 6/13/2008 Amanda Smith No secondary sales rep $26,808.00 $2,680.80 $0.00 $2,680.80 71 2008 6/14/2008 Mitchel Bogart $33,711.00 $3,371.10 $0.00 $3,371.10 72 2008 6/15/2008 Fred Jones $27,301.00 $2,730.10 $0.00 $2,730.10 73 2008 6/17/2008 Amanda Smith No secondary sales rep No secondary sales rep No secondary sales rep $82,690.00 $8,269.00 $0.00 $8,269.00 74 2008 6/24/2008 Kelly Thomas Kyle Freeman $47,935.00 $4,793.50 $2,396.75 $7,190.25 75 2008 6/26/2008 Amanda Smith No secondary sales rep $26,226.00 $2,622.60 $0.00 $2,622.60 76 2008 6/27/2008 Willie Johnson Jim Jackson $83,781.00 $8,378.10 $4,189.05 $12,567.15 77 2008 6/29/2008 Kelly Thomas Kyle Freeman $43,999.00 $4,399.90 $2,199.95 $6,599.85 78 2008 7/7/2008 Kelly Thomas Kyle Freeman $32,399.00 $3,239.90 $1,619.95 $4,859.85 79 2008 7/13/2008 Mark Esposito No secondary sales rep $12,617.00 $1,261.70 $0.00 $1,261.70 80 2008 7/14/2008 Inez Sanchez Willie Johnson $13,140.00 $1,314.00 $657.00 $1,971.00 81 2008 7/15/2008 Willie Johnson Jim Jackson $62,102.00 $6,210.20 $3,105.10 $9,315.30 82 2008 7/18/2008 Willie Johnson Jim Jackson $67,038.00 $6,703.80 $3,351.90 $10,055.70 83 2008 7/21/2008 Jim Jackson Kelly Thomas $19,759.00 $1,975.90 $987.95 $2,963.85 84 2008 7/21/2008 Willie Johnson No secondary sales rep $37,330.00 $3,733.00 $0.00 $3,733.00 85 2008 7/21/2008 Laura Barber Jason Willis $52,635.00 $5,263.50 $2,631.75 $7,895.25 86 2008 7/21/2008 Inez Sanchez Mark Esposito $68,743.00 $6,874.30 $3,437.15 $10,311.45 87 2008 7/29/2008 Ryan Leaf No secondary sales rep $83,160.00 $8,316.00 $0.00 $8,316.00 88 2008 Fred Jones $77,149.00 $7,714.90 $3,857.45 $11,572.35 8/4/2008 Victoria Beckham 89 2008 No secondary sales rep $78,050.00 $7,805.00 $0.00 $7,805.00 90 2008 8/13/2008 Laura Barber Jason Willis $81,426.00 $8,142.60 $4,071.30 $12,213.90 91 2008 8/17/2008 Fred Jones No secondary sales rep $22,040.00 $2,204.00 $0.00 $2,204.00 92 2008 8/17/2008 Amanda Smith Brady Marshall $71,062.00 $7,106.20 $3,553.10 $10,659.30 93 2008 8/19/2008 Willie Johnson Ryan Leaf $60,714.00 $6,071.40 $3,035.70 $9,107.10 94 2008 8/20/2008 Jim Jackson Jason Willis $19,112.00 $1,911.20 $955.60 $2,866.80 95 2008 8/26/2008 Mitchel Bogart No secondary sales rep $15,054.00 $1,505.40 $0.00 $1,505.40 96 2008 8/26/2008 Inez Sanchez Willie Johnson $47,640.00 $4,764.00 $2,382.00 $7,146.00 97 2008 8/28/2008 Inez Sanchez No secondary sales rep $77,466.00 $7,746.60 $0.00 $7,746.60 98 2008 9/3/2008 Sandy McKnight No secondary sales rep $35,291.00 $3,529.10 $0.00 $3,529.10 99 2008 9/5/2008 Kelly Thomas No secondary sales rep $50,161.00 $5,016.10 $0.00 $5,016.10 100 2008 9/6/2008 Inez Sanchez No secondary sales rep $31,414.00 $3,141.40 $0.00 $3,141.40 101 2008 9/8/2008 Fred Jones Inez Sanchez $32,061.00 $3,206.10 $1,603.05 $4,809.15 102 2008 9/15/2008 Kelly Thomas No secondary sales rep $53,299.00 $5,329.90 $0.00 $5,329.90 103 2008 9/18/2008 Sandy McKnight Mark Esposito $16,061.00 $1,606.10 $803.05 $2,409.15 104 2008 9/19/2008 Ryan Leaf No secondary sales rep $79,489.00 $7,948.90 $0.00 $7,948.90 105 2008 9/29/2008 Amanda Smith Brady Marshall $24,530.00 $2,453.00 $1,226.50 $3,679.50 106 2008 9/30/2008 Willie Johnson No secondary sales rep $56,860.00 $5,686.00 $0.00 $5,686.00 107 2008 10/1/2008 Laura Barber Kyle Freeman $50,203.00 $5,020.30 $2,510.15 $7,530.45 108 2008 10/3/2008 Willie Johnson No secondary sales rep $78,844.00 $7,884.40 $0.00 $7,884.40 109 2008 10/5/2008 Brady Marshall Laura Barber $83,080.00 $8,308.00 $4,154.00 $12,462.00 110 2008 10/6/2008 Jim Jackson Laura Barber $83,476.00 $8,347.60 $4,173.80 $12,521.40 111 2008 10/7/2008 Inez Sanchez No secondary sales rep $22,344.00 $2,234.40 $0.00 $2,234.40 112 2008 10/8/2008 Mitchel Bogart No secondary sales rep $59,066.00 $5,906.60 $0.00 $5,906.60 113 2008 10/11/2008 Mitchel Bogart No secondary sales rep $31,105.00 $3,110.50 $0.00 $3,110.50 114 2008 10/13/2008 Brady Marshall Sandy McKnight $33,803.00 $3,380.30 $1,690.15 $5,070.45 115 2008 10/13/2008 Willie Johnson Sandy McKnight $74,169.00 $7,416.90 $3,708.45 $11,125.35 116 2008 10/13/2008 Willie Johnson No secondary sales rep $82,884.00 $8,288.40 $0.00 $8,288.40 117 2008 10/20/2008 Mitchel Bogart No secondary sales rep $64,208.00 $6,420.80 $0.00 $6,420.80 118 2008 10/24/2008 Jason Willis Mark Esposito $83,392.00 $8,339.20 $4,169.60 $12,508.80 119 2008 11/4/2008 Mitchel Bogart Amanda Smith $49,694.00 $4,969.40 $2,484.70 $7,454.10 120 2008 11/5/2008 Laura Barber No secondary sales rep $24,574.00 $2,457.40 $0.00 $2,457.40 121 2008 11/9/2008 Mark Esposito Amanda Smith $65,663.00 $6,566.30 $3,283.15 $9,849.45 122 2008 11/11/2008 Kelly Thomas No secondary sales rep $34,808.00 $3,480.80 $0.00 $3,480.80 123 2008 11/11/2008 Mitchel Bogart No secondary sales rep $82,551.00 $8,255.10 $0.00 $8,255.10 124 2008 11/12/2008 Jim Jackson Laura Barber $64,771.00 $6,477.10 $3,238.55 $9,715.65 125 2008 11/16/2008 Mitchel Bogart No secondary sales rep $55,204.00 $5,520.40 $0.00 $5,520.40 126 2008 11/16/2008 Ryan Leaf $66,536.00 127 2008 11/17/2008 Jim Jackson Sandy McKnight Jason Willis $70,709.00 $6,653.60 $7,070.90 $3,326.80 $3,535.45 $10,606.35 8/7/2008 Ryan Leaf $9,980.40 128 2008 11/19/2008 Amanda Smith Mark Esposito $11,871.00 $1,187.10 $593.55 $1,780.65 129 2008 11/21/2008 Laura Barber No secondary sales rep $34,518.00 $3,451.80 $0.00 $3,451.80 130 2008 11/21/2008 Mitchel Bogart No secondary sales rep $83,979.00 $8,397.90 $0.00 $8,397.90 131 2008 11/22/2008 Ryan Leaf Jason Willis $15,196.00 $1,519.60 $759.80 $2,279.40 132 2008 11/23/2008 Amanda Smith No secondary sales rep $72,644.00 $7,264.40 $0.00 $7,264.40 Copyright 2014 Deloitte Development LLC. All rights reserved. Forensic Accounting Case Study Series – sponsored by Deloitte FAS LLP and the Deloitte Foundation Sales Commission Fraud – Bags Medical Device Company Case No. 2-1 Contracts by Year Primary Contract # Contract Year Contract Date Primary Sales Rep Secondary Sales Rep Contract Amount Secondary Total Commission Commission Commission 133 2008 12/1/2008 Fred Jones Kyle Freeman $25,196.00 $2,519.60 $1,259.80 $3,779.40 134 2008 12/1/2008 Kelly Thomas Amanda Smith $62,233.00 $6,223.30 $3,111.65 $9,334.95 135 2008 12/3/2008 Fred Jones Inez Sanchez $29,720.00 $2,972.00 $1,486.00 $4,458.00 136 2008 12/7/2008 Brady Marshall No secondary sales rep $41,294.00 $4,129.40 $0.00 $4,129.40 137 2008 12/10/2008 Ryan Leaf Jason Willis $38,037.00 $3,803.70 $1,901.85 $5,705.55 138 2008 12/19/2008 Sandy McKnight Fred Jones $30,606.00 $3,060.60 $1,530.30 $4,590.90 139 2008 12/19/2008 Amanda Smith No secondary sales rep $31,353.00 $3,135.30 $0.00 $3,135.30 140 2008 12/23/2008 Inez Sanchez No secondary sales rep $27,256.00 $2,725.60 $0.00 $2,725.60 141 2008 12/23/2008 Brady Marshall No secondary sales rep $71,543.00 $7,154.30 $0.00 $7,154.30 142 2008 12/25/2008 Brady Marshall Mark Esposito $65,646.00 $6,564.60 $3,282.30 $9,846.90 143 2008 12/27/2008 Kelly Thomas No secondary sales rep $47,878.00 $4,787.80 $0.00 $4,787.80 144 2008 12/28/2008 Willie Johnson No secondary sales rep $63,479.00 $6,347.90 $0.00 $6,347.90 145 2008