Forensic Accounting Case Study

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:

  1. Company Overview paragraph.
    2.

Informational Interview with CEO Steve Flanders.

3.

Completed Excel spreadsheet showing sales results and commissions.

Assignment:

  1. 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:

  1. Sales reps are responsible for meeting with the customers and
    collecting sales orders after an initial contract is established.
  2. 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.
  3. 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:

  1. Mitchel Bogart — Sales Rep
  2. Carly McFinnigan — Accounting Clerk
  3. Amanda Smith — Sales Rep
  4. Willie Johnson — Sales Rep
  5. Barry McMillan — Contracting Manager

Other Information

  1. 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.
  2. 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

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