Society for Case Research MBAA 2020

Experience level: 
Intended Audience: 
Dr. Perry Glen Moore

Suit accuses CEO of taking $7M

Peter Neely was intrigued by the newspaper headline that accused a local business CEO of embezzling $7 million. The headline reminded Neely of his recent difficulties in using his third-party medical benefit credit card issued by that CEO’s business (1Point Solutions). As Neely investigated and read an ever increasing supply of news reports, he came to realize that his employer had outsourced administration of their medical/dependent care plans to an entity that appeared to be operating as a Ponzi Scheme. Neely pondered the sufficiency of his employer’s due diligence, the viability of 1Point’s low ball bid, and whether the concept of ‘grace’ impacts the consideration of negative events identified through due diligence.