Due Diligence: Case Studies

Challenge: We were tasked with verifying company credentials and rumored government connections of senior management.

Solution

1. The site visit revealed the company operates from a rented one-room apartment, with limited business activity, no corporate signage and no signs of commerce.
2. The local investigator’s review of corporate records found no local registration in China; however, additional research revealed registration in British Virgin Islands, a known tax haven.
3. Discreet sources confirmed a senior executive’s close ties with a high-ranking government official, which was not disclosed to client.

Result: Based upon our research and investigations, our client declined further discussions with this possible agent.

Challenge: We were tasked with verifying company credentials, confirming financial stability, and reviewing civil/criminal backgrounds of senior management.

Solution

1. A local review of corporate records and discussions within the business community verified proper registration and adequate financial resources.
2. A review of senior managements’ civil/criminal history conducted in local courts and through law enforcement contacts revealed no previous infractions.
3. However, a discreet interview with a Federal intelligence officer revealed an ongoing money laundering investigation pertaining to one of the senior manager’s other businesses. Due to the fact that it was classified with ongoing investigations, further details could not be provided.

Result: Our client declined to pursue the joint venture opportunity until the ongoing investigation was resolved.

Challenge: We were tasked with verifying the applicant’s education, employment, financial background, corporate affiliations, and civil/criminal history.

Solution

1. Initial employee screening research revealed no history of personal civil/criminal matters.
2. All employee background check information including the applicant's Name, Address, Date of Birth, ID Number and Passport were verified as legitimate.
3. Previous employment and corporate affiliations were verified; however, the applicant was also determined to have been a Director of two additional companies, not disclosed on the application, that were found to have been dissolved and/or bankrupt in the last three years.
4. The applicant’s undergraduate degree was verified; however, the reported Master’s Degree was found to have been obtained from a “diploma mill” that is currently under fraud investigation in the United States.

Result: Based upon discrepancies that showed a difference in the results obtained and the information provided by applicant, our client decided not to appoint this individual.