Medical Equipment Leasing Fraud – Turkey
On behalf of a medical equipment manufacturer and their counsel, a WCF executive oversaw a forensic accounting investigation of an elaborate fraudulent scheme in which two company executives based in Europe improperly entered into leasing agreements of medical equipment in which they provided 100% financing of medical facilities that were constructed to house the medical equipment and 2 different versions of the leasing agreement. The English language version submitted to corporate headquarters approval contained the company’s standard terms and conditions whereas the foreign language version of those agreements contained very generous terms that favored the customer leaving the company with little to no recourse or collateral in the event of a default. These fraudulent lease agreements caused the company to incur a huge amount of defaults and a loss of over $50 million. The resulting investigation and forensic analysis revealed that the two employees had entered into side agreements with these customers in which they received kickbacks with the understanding that the customers would receive the medical equipment and facility and then default knowing that the company had no recourse. The investigation included intensive data analytics and forensic accounting, dozens of data visualization charts and graphs showing improper relationship and money flows and enabled the company to recover $56 million of their $60 million loss in an insurance claim.