- Problem: A large US-based media group decided to conduct reputational due diligence before entering into a purchase transaction for a Russian-based group.
- Action: Critical information on the reputation of the target was discovered, including reports on an ongoing russian government inquiry related to one of its subsidiaries. The subsidiary was accused of paying $ 1 million in bribes to public officials of the russian government to obtain contracts in Moscow.
- Impact: Our client dismissed the acquisition, once the accusations of bribery were known.
Asset Tracing and Business Intelligence & Investigations (BI&I)
- Problem: A company, domiciled in England and belonging to the tourism sector, intended to take legal action against the guarantors of another (insolvent company), indebted to the first for a considerable amount of money. The debt was backed by personal guarantees from guarantors, who were also partners of the bankrupt company. On the other hand, one of the partners of the bankrupt company was the sole administrator of another company, established a few months before requesting bankruptcy, which is suspected of being a proprietary or instrumental company used by guarantors to protect their assets. against possible claims.
- Action: From the examination of the financial information of the companies involved and that provided by the corresponding Property and Commercial Registries, we have deduced that the payment of the shares to the holding company at the time of its constitution was made through non-monetary contributions. consisting of several farms. We have also revealed that, before contributing them to the patrimonial company, these properties were property of the guarantors.
- Impact: Our client, despite the indications of asset seizure that we provided in our Report, finally preferred not to initiate the judicial procedure pending a possible agreement from the bankrupt debtor company.
Identification of potential frauds
- Problem: The client asked us to carry out a reference check of a potential partner located in Asia, with the idea of identifying potential frauds that he had committed in his previous or current stage. The information would serve as a basis for deciding whether or not to continue the process of negotiating with that person in order to open the doors of the asian market to the client company.
- Action: We determined that the credentials he provided were true, with respect to the host country, being a person with high official and institutional contacts in the asian country.
The credentials he provided on his past were not entirely true. The recent financial operations in a third country had been a fraud for which their respective partners had been imprisoned. The person being investigated was being investigated by the authorities of a european state for possible property fraud committed in his country. - Impact: Our client decided to abandon the operation and negotiations thanks to the information provided.