Bribery accusations

  • 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.

Reputational due diligence

  • Problem: A Transactions Team (TS) assisted a venture capital company in acquiring the multinational division in South America. The seller was subject to FCPA violations in the area and the buyer was concerned about whether the target was involved in these violations.
  • Action: TS required corporate intelligence services to conduct a reputational due diligence of the target and its management team. We focused on searches related to relevant state and local regulators as well as foreign language news and public records to find any indication that the subsidiary or its management team was involved in the bribes described in the FCPA case.
  • Impact: Our report, which supplemented the TS report, found no reason to believe that the target was involved in bribes related to the FCPA case. In fact, the subsidiary was identified as respected in the industry, holding important positions in various associations of the sector.

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.