Case Study

Uncovering hidden risks: How our investigation team helped protect an investment firm from a problematic investor

A US medium-sized investment firm was considering receiving funds from a possibly problematic investor, and the firm needed an investigation team. The investment firm was concerned about the possible damage that could be inflicted on its business reputation and finances if the investor was found to have engaged in fraudulent or illegal activities. As a result, the investment firm wanted to ensure they had all the necessary information and identified all hidden risks before accepting any funds from the investor in question.

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Challenge Briefing

A US medium-sized investment firm was considering receiving funds from a possibly problematic investor, and the firm needed an investigation team. The investment firm was concerned about the possible damage that could be inflicted on its business reputation and finances if the investor was found to have engaged in fraudulent or illegal activities. As a result, the investment firm wanted to ensure they had all the necessary information and identified all hidden risks before accepting any funds from the investor in question.

Solution

Our experienced analysts and investigators immediately began digging into the investor's background. We reviewed public records, financial statements, and other documents related to the investor's business activities. We also conducted interviews with former colleagues and business partners to get a better sense of the investor's reputation and track record.

One of the first things we noticed was that the investor had a history of legal troubles. We found several instances where the investor had been sued for breach of contract or other business-related disputes. We also found that regulatory agencies had investigated the investor in the past for possible securities violations, yet no charges had been filed to date.

As we continued our investigation, we uncovered evidence of potential fraudulent activity. Specifically, we found that the investor had been involved in several transactions that appeared to be designed to inflate the value of certain assets artificially. We also found evidence of possible insider trading, as the investor appeared to have been buying and selling securities based on non-public information.

The team presented our findings to the investment firm's management team and made recommendations on how to proceed. We advised the firm to suspend any further conversations with the investor until a full investigation could be conducted. We also recommended that the firm consider legal action against the investor, if necessary, to protect their interests.

Impact

Based on our findings, the investment firm terminated its relationship with the investor. In addition, our investigation helped the firm avert potential damage to its reputation and finances, as they uncovered potential problems before they became more serious.

Our investigation also demonstrated the importance of thorough due diligence before accepting funds by an investor. By working with our team of experienced investigators and analysts, the investment firm could make informed decisions based on reliable information. This helped them protect their business integrity and minimize the risk of financial losses.

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security, risk management, compliance, and deterring malfeasance in organizations

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