Insights

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

July 28, 2021 | Investigations Investigations + Due Diligence

One of the most spectacular crimes in recent European history occurred in 2009 during the Dutch national holiday Queen’s Day. In an assassination attempt, a 38-year-old Dutchman drove his car through a crowd of spectators toward an open bus carrying Queen Beatrix and other members of the royal family. Although no one from the royal family was harmed, seven spectators were killed and ten were seriously injured.

The story of the Queen’s Day attack is recounted in “Murder in … 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

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

May 18, 2018 | Investigations

In a highly competitive lateral market, about half of law firm hires don’t make it past the first five years and retention rates continue to disappoint. Retaining key hires can be a complex issue and chief among the considerations is being sure the due diligence is done before making an offer. A quick scan of any legal publication illustrates how, time and time again, the reputation of a firm is damaged by a lack of proper due diligence.

The scenario … Read More

September 15, 2016 | Investigations + Due Diligence

Several years ago, a colleague and I conducted a background investigation of an English lord who was being considered for a senior position at an American company.  His c.v. included directorships at several British companies but we soon discovered that he had “forgotten” a few companies, including one where he had served as non-executive chairman.  Research on that company quickly revealed that it had gone bankrupt shortly after his tenure as chairman ended. Not surprisingly, he did not get the … Read More