This special report is about Benitec (BTEBY), a stock we recommend, after I spent the morning at its US Investor Day. It also is about Blue, my daughter’s family dog.

Meet Dr KSS and Benitec, our stock he recommended.

Medical boards all across the country let doctors get away with fakery on their resumes. But not all do. A midwestern Board of Medical and Osteopathic Examiners makes applicants for licenses in a range of medical professions sign an affidavit saying “that any derogatory information regarding [the licensee’s] personal background that was not disclosed when completing the application shall disqualify [the licensee] for registration in [their state].” Then the board follows through by actually verifying the information with other state boards, law enforcement agencies, hospitals, and, presumably, the National Practitioner Data Bank.

This board has taken action against 38 licensees. Five of those have been against fibbers.

Dr. KSS, a gastroenterologist who practices elsewhere, applied for a license in the state in question in August 2009. Dr KSS answered no to some key questions, as the board noted in a disciplinary action:

Whether he had been notified of a complaint by a medical facility or health-related entity.

Whether he had been subject to proceedings or investigations for any reason by any medical facility or health-related entity.

Whether he had a mental or emotional condition which could preclude him from performing the essential functions of his practice.

The board, unlike so many boards nationwide, did not take the “no” answers at face value. The board checked. And the board found that Dr KSS had been hit with multiple complaints “due to his disruptive behavior” and that he had “failed to complete a voluminous amount of required dictation,” ultimately leading to his being placed “under medical care for emotional issues.”

Failing to complete dictation in medicine is serious. Those assessments of patients are what drive diagnoses, treatment decisions, surgeries, referrals to specialists and the list goes on. Whether any patients were harmed is left unsaid, as is nearly everything else about Dr KSS’s history.

His home state was no help as its Medical Board listed no actions against Dr KSS. His patients are not very happy with him either. Here is a summary of their experiences:

Dr KSS Tips Benitec in Jan.

So now you know why this MD and PhD has enough time on his hands to write for stockgumshoe.com, to which I subscribe. It was Dr KSS who first tipped me and other readers to shares of a barely-known Australian drug developer, Benitec Biopharma Ltd. I wrote it up for our readers and bought shares alongside them. As a good journalist, I attributed the information in my first note on the Sydney share (ticker symbol: BLT) to what I had learned from Dr. KSS. Dr KSS had highlighted the appeal of its ddRNAi, of which I knew nothing before he wrote the share up in stockgumshoe.com this January. Benitec issued its ADR a some 3 months later (conversion of my Australian shares was free). I adder a modest number of shares at twice my former cost at the ADR ipo. However, as a believer in diversification, I remain a relatively small holder of BTEBY.