Former Senior Partner at Global Management Firm Sentenced to Federal Prison

McKinsey & Company Inc., a global management consulting firm based in New York, has agreed to pay $650 million to resolve a criminal and civil investigation into the firm’s consulting work with opioids manufacturer Purdue Pharma L.P. The resolution pertains to McKinsey’s advice to Purdue concerning the sales and marketing of the company’s extended-release opioid drug, OxyContin, including an engagement advising steps to “turbocharge” sales of OxyContin. Additionally, a former McKinsey senior partner who worked on Purdue matters has been charged with obstruction of justice. Martin E. Elling, a US citizen currently residing in Bangkok, Thailand, has been charged with one count of knowingly destroying records, documents, and tangible objects with the intent to impede, obstruct, and influence the investigation. Elling has agreed to plead guilty. 

“Today’s resolution holds this defendant accountable for its role in the aggressive marketing and promotion of opioids. Their actions led to medically unnecessary opioid prescriptions, which compromised the integrity of VA’s healthcare system that cares for our nation’s veterans,” said VA Inspector General Michael J. Missal. “We thank our law enforcement partners for their diligent work in bringing this case to closure.” 

The VA OIG, the Health and Human Services OIG, the FBI, the Food and Drug Administration Office of Criminal Investigations, and the Office of Personnel Management OIG investigated this case.

Martin Elling, a former senior partner at McKinsey & Company, waived his right to indictment and pleaded guilty to one count of knowingly destroying records with the intent to impede, obstruct, and influence the investigation and proper administration of a matter within the jurisdiction of the Department of Justice. McKinsey & Company recently agreed to pay $650 million to resolve criminal and civil investigations into the firm’s consulting work with opioids manufacturers, including Purdue Pharma, LP. The VA OIG, Food and Drug Administration’s Office of Criminal Investigations, FBI, Department of Health and Human Services OIG, and Office of Personnel Management OIG investigated this case with assistance from the Department of Justice’s Computer Crimes and Intellectual Property Section.