Kreller | Fraud Investigation for Medical Device Manufacturer in India: Case Study & Results

The general counsel for a medical device manufacturer contacted Kreller after receiving an email from an individual purporting to be a surgeon offering bribes through a client distributor in exchange for prescribing the client’s devices. Due to bribery and schemes, the situation raised concerns, causing the Kreller team to conduct medical device fraud investigations. 

The Investigation

Kreller researched the identity of the surgeon who reportedly sent the email and the email address used to send the allegation. The research was only able to confirm one licensed surgeon using that name in India. A profile for a doctor using that name was located. Still, it appeared to have been created for use in this scheme as the individual had no connections, the details of his background were limited and unable to be tied to an actual individual, and the profile had numerous typos.

Research did not locate any other instances where the email address had been used and the email itself included several grammatical and spelling errors. An interview was conducted with the licensed surgeon in India who allegedly sent the email. He denied having sent the email, denied having been in attendance at the event where the bribe was reported to have taken place, and denied ever being offered a bribe or having purchased the client's products. He was credible and suggested that it was common in the medical device field for rival companies to attempt to tarnish one another’s image by planting this allegation. Discreet inquiries were made by others in the industry, confirming that this was common practice in India. 

The Result

As a result of Kreller’s fraud investigation, the client felt confident that the email complaint had not come from a legitimate doctor and that the allegations were not credible. 

The Conclusion

They could close the investigation without expending any unnecessary time or money and peace of mind. 

Summary

India can present several challenges from a due diligence perspective: weak corporate governance, increased security concerns, and specific search requirements to access/verify data. However, it’s an extremely attractive market if approached correctly. By proactively researching a potential engagement, you can develop a meaningful relationship with a qualified partner in an explosive growth market.