MyZ Company is an innovative company that recently invented some new technology that allows AI to work with hospital medical files on patients with severe health conditions. AI analyzes all existing X-rays, MRIs, and all test results from the lab to diagnose the problem and recommend a possible resolution or treatment plan. Of course, the assigned physician must review the analysis and recommendations as well as the treatment plan to make sure it is the correct one in light of the existing data and the patient. MyZ figures the patent is worth $10 billion dollars to major hospitals. The technology was developed in their innovations lab over the course of several years with 5 lab assistants to their major designer. MyZ's patent has not been approved.

 

In the meantime, a rival company, MTT, has announced a new product for which they say they already have the patent.

The CEO of MyZ became suspicious when an innovation lab assistant resigned just after they filed the patent a year ago and then this identical competitive product was announced six months later by the large established MTT technology company. At the time the lab assistant left, all his papers were left as is, and his access to all data and files was terminated. His reason for leaving was ostensibly to work on customer training in technology rather than in the research laboratory environment. The CEO has accused the MTT company of fraud.

• As a fraud audit team member at MyZ company, determine what type of crime has been committed, if any.
• Then determine the steps your team would take to investigate this potential fraud.
• What detection methods could be implemented to deter any other lab assistants copy this behavior in the future?

Answer rating: 100% (QA)

The potential crime that may have been committed is intellectual property theft or trade secret misappropriation If the lab assistant intentionally sh... View the full answer