Complete 2012 forensic audit documents - Kansas Bioscience ...

and interview. As previously stated, Lynch indicated that Katterhenry and Thornton also
occasionally used the American Express cards for personal use and reimbursed KBA. BKD was
able to verify both Katterhenry and Thornton’s occasional personal use of and reimbursement for
the American Express cards.
Mr. Abdullah also found unethical behavior in that Ms. Lynch accessed Mr. Thornton’s email
without his consent. Lynch indicated that part of her job responsibilities were to review his
email and delete emails that he did not need to read. She indicated that Thornton, therefore,
knew that she had access to his email. Thornton disputed that he gave Lynch access to his email.
BKD notes that Thornton’s recent Executive Assistant, Marsh LoScalzo, did not have access to
his email account.
Mr. Abdullah found that Ms. Lynch was separated from employment at KBA due to negative
performance issues and unauthorized access to Thornton’s email. Abdullah found that Thornton
felt Lynch’s job performance was lacking, specifically in the area of communicating with the
BOD. Therefore, in late 2007, Thornton initiated a confidential search for Lynch’s replacement.
Abdullah indicated that most likely, during the first full week of February 2008, Thornton met
with Lynch to discuss her on-going performance issues. During this meeting, Lynch informed
him that she had found new employment and that February 15 th would be her last day. Thornton
accepted this and on February 8 th informed Directors Lawrence, Sanford and McKechnie of the
same.
Mr. Abdullah’s memorandum referred to the previously described email string in which Lynch
accessed Thornton’s email account and forwarded to her personal account Thornton’s email to
Directors Lawrence, Sanford and McKechnie. Therefore, Abdullah found that Lynch originally
gave notice of her intent to leave KBA at the close of business on February 15, 2008, but was
separated from her employment for cause prior to that date.
Other Employment Decision Allegation
During the course of our investigation, we received information relating to at least one other
employment decision by Mr. Thornton. We were asked to investigate whether this employment
decision was made in an effort to cover up alleged inappropriate intimate behavior between
Mr. Thornton and Lindsay Holwick Thornton in KBA’s offices.
Based on the review of computer forensic records and evidence and an evolution of the relevant
timetable, our assessment is that the most likely scenario is that the decision was made for work
performance related issues.
Use of Non-Attorney as Contract Administrator
It has been alleged that it is inappropriate for KBA to use non-attorney personnel in the position
of Contract Administrator as that position is responsible for developing and writing the contracts
approved by the Investment Committee and the BOD, and is responsible for monitoring
milestone grants.
KBA’s General Counsel, Tariq Abdullah, indicated that there is no requirement that the contract
administrator be an attorney. Furthermore, Mr. Abdullah indicated that he drafts the contracts
and Nancy Ruf, the contract administrator, assists him under his direction and supervision.
Mr. Abdullah stated that he reviews all contracts prior to their execution.
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