RESULTS FOR: Due Diligence
September 29, 2022 | Due Diligence Financial Crime Consulting
Regulatory trends and high-profile investigations suggest that law firms should conduct enhanced due diligence background checks on all potential clients as part of standard risk management and compliance protocols.
The U.S. House of Representatives recently passed anti-money laundering legislation that would require law firms (in addition to accountancies, payment service providers, and trust companies) to report suspicious transactions by clients, as banks already must do.
Despite industry push back and arguments by some that the affirmative reporting obligations would negatively … Read More
June 28, 2022 | Compliance Due Diligence
Lost in the uproar over the China Initiative that the Justice Department eventually shut down was the role of universities in ensuring compliance with disclosure requirements related to foreign affiliations. In at least some of the cases, signs of potentially inappropriate affiliations seem to have been missed by university officials, leading to intrusive and disruptive criminal investigations. Even in cases where a prosecution is successful, you must ask whether it was worth it when it could have all been so … Read More
February 22, 2021 | Due Diligence Risk + Compliance
Hall of Fame Pitcher Satchel Paige once said, “Don’t look back. Something might be gaining on you.” This great advice could use a revision: look back, for what’s behind you may be catching up.
Hostile takeovers are back in the news. Recently, CoreLogic, the real estate industry data and analytics giant, had to beat back a takeover bid from Cannae Holdings and Senator Investment Group, eventually approving a merger agreement with two private equity firms, Stone Point Capital and Insight … Read More
February 10, 2021 | Due Diligence Risk + Compliance
Insider threats, a security risk that comes from inside the organization itself, continue to be a risk for organizations even in the midst of a global pandemic. With many employees working remotely and dealing with the challenges COVID-19 presents, it is easier than ever for employees to be recruited even unintentionally by threat actors. That’s because adversaries now have access to free or commercially available technological tools. These tools, which include forms of social media, encrypted communication platforms, and dedicated … Read More
May 19, 2020 | Due Diligence
Vetting potential business partners or investment opportunities for “red flags,” is critical to fully understanding potential risks before signing a contract. However, not all due diligence investigations are routine, as I was recently reminded with two cases that posed the following questions: 1) Is it enough to do only US-based due diligence on a foreign entity; and 2) What is the best way to conduct due diligence on a newly formed entity?
For investments in a foreign company … Read More
January 27, 2020 | Due Diligence Investigations
According to the Department of Justice, Sultan Issa, the former Chief Financial Officer of a group of partnerships, corporations and trusts owned by a Chicago-area family, recently pled guilty to embezzling over $65 million. “Simply, I lied to a lot of people and I stole their money,” Issa told U.S. District Judge Andrea Wood. “And financial institutions as well.” Issa used his position of trust to steal money to fund his lavish lifestyle for nearly a decade. How did his … Read More
August 20, 2019 | Due Diligence Investigations
A recent article from the Wall Street Journal discusses the resignation of the Care.com CEO after an earlier investigation reported on the inadequate vetting of the company’s caregivers. “Ms. Marcelo’s resignation as CEO comes after the Journal’s investigation in March found instances in which caregivers hired through the Care.com platform had police records and were accused of committing crimes while caring for clients, including child abuse, sexual assault and murder.”
This is truly alarming, and of great concern to those … Read More