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ICM Case Studies

The following case studies are selected from actual client engagements. Names and circumstances have been omitted or changed, except for publically disclosed matters, to protect the identity of our clients and the confidentiality of our engagements.


Pre-Transaction Intelligence
A U.S. media conglomerate was considering bidding for a privatized Latin American TV license, which required a joint venture with a local partner.  We first determined that the potential partner was free of drug, money laundering and other unsavory issues which would be unpalatable to our client.  We then gathered intelligence about the identity and resources of the other bidders and their local partners.  When our inquires into the local country government indicated that the final privatization rules were likely to favor another bidder, our client withdrew.

Intellectual Property Intelligence
A leading high-the company had developed a process for manufacturing its product which allowed it to dominate the market, produce a high quality product while pricing the product considerably below its closest competitors.  For these reasons, the manufacturing process was viewed as a distinct source of competitive advantage.  Company management had reason to believe that certain Asian competitors might be infringing one or more of the company’s patents in their manufacturing process.  We gathered intelligence on the competitors’ manufacturing processes, focusing on those areas of suspected infringement, and were able to document instances in which the competitors’ manufacturing processes employed the company’s patented technology.  Armed with this intelligence, our client was able to negotiate advantageous licensing agreements with the competitors. 
 
Litigation Intelligence and Support
A fortune 50 conglomerate, based in the Southeast, noticed damaging rumors about the company appearing on Internet message boards.  When rumors were picked up by a financial cable channel, the company’s stock dropped precipitously.  Because the rumors were exaggerations of confidential information within the company, we investigated employees with a grudge against the company.  Through a number of investigative techniques, we traced the Internet messages to a recently terminated employee.  We subsequently uncovered links between the employee and a well0known short seller who had recently issued a negative report about the company.  Our law firm client was then able to file various actions, blocking the employee from further message board postings and alleging securities violations by the employee and the short seller. 
 

Corporate Contests and Hostile Takeover Defense
 A mid-western based marketing and distribution company launched an all-cash tender offer against a competitor.  We obtained intelligence that the offer was being championed by the “new generation” of management, with only lukewarm support by the company’s founders.  We learned that the founders were heavily involved in attempting to obtain a professional sports franchise, and would not tolerate negative publicity.  Our investigation into the company, its directors and its management, uncovered an equity interest by a senior executive in a trucking company that being investigated for RICO violations.  An article about this finding appeared on the front page of the Wall Street Journal.  Two days later, the company withdrew its offer.
 
Energy – Don’t Practice What You Preach

 In-house counsel for a public company in Missouri received an anonymous letter alleging that procurement and other policies set by the CEO of a subsidiary, which operated a nuclear power plant were privately overridden by him and his team.  Counsel recruited forensic accountants to assist him with determining the merits of the letter.  Interviews with the CEO and management team elicited strong statements that they conducted business by strictly adhering to policy, especially because they operate a nuclear power plant where there was no room for compromise.  However, interviews with employees painted a picture more consistent with the issues raised in the anonymous letter.  Their obvious frustration, supported by financial information, included an apparent violation of the procurement policy, which pointed to providing business to what appeared to be favored vendors.  The most favored vendor, who had recently hired the son of the CEO, was contacted and initially agreed to cooperate fully.  However, he did not appear at the scheduled meeting, and the CEO and his management team were released.
 
Construction – Shopping Mall

A $140 million, newly constructed suburban mall was plagued by $30 million in cost overruns.  Forensic accountants, working with technical experts, examined change orders and accompanying supporting documentation.  The review resulted in a reduction in claims of approximately $10 million.
 
Financial Fraud Investigation
The European subsidiary of a US-based professional services firm learned that its administrative officer was conspiring with a parcel delivery vendor to charge the company for overnight delivery even when rush delivery was not required.  Our investigation determined that no other company employees were involved in the fraud, but that senior management was inexcusably lax and that controls were weak or non-existent.  We discovered that the fraud had been going on for eight years and that the company’s resultant loss was some $5 million.  We reconstructed all the transactions to support the company’s claim under its fidelity insurance policy. 
 
Office Complex
During the construction of a $50 million twin eight-story office complex for a leading banking institution, forensic accountants monitored the project for integrity lapses.  They reviewed bid documents, progress billings, change orders, etc. and conducted site inspections.  These activities revealed significant overcharges related to duplicate billings, material substitutions and inflated payroll charges.  Numerous recommendations were made to improve the client’s construction oversight process. 

Saddam Hussein
In 1989, after the seizure of Kuwait by Iraq, the Kingdom of Kuwait needed assistance in identifying internal assets controlled by Saddam Hussein.  The investigation exposed the secret ownership by the Iraqi government in business entities and stockholdings located in the U.S., the UK, France and other countries.  Our work contributed to the seizure of these assets and later to the repatriation of stolen assets to Kuwait.  The findings were reported on “60 Minutes” and in media around the world.
 
Cyber Investigations

When a European corporation wanted to acquire a company in another country, things said during early negotiations led them to suspect that their interest in the company had been leaked.  The acquisition cost them US$15 million more than they had expected, and they asked us to investigate the leak.  We determined through examination of internet proxy logs that the M&A department had conducted extensive surveillance of the target company’s website.  They did realize that every one of those thousands of accesses pointed right back to them.  We helped them to develop a means of confidential web surfing that combined several methods to avoid any trace-back or volume-blip that could warn an acquisition candidate of our client’s interest. 
 
Cyber Investigations
A corporation that wanted to divest one of its divisions found that the value was dropping, as a new competitor had come on the scene and was underbidding them.  A covert evaluation of the company’s computers proved that the senior employees had set up the competitor, were leaking their bids to the competitor, and that the plan was to buy the division at a low price and then merge the “competitor” into it.  Armed with the proof, the company undertook civil action to protect their right and to recover losses.

Monitoring and Integrity Services
When the New York Times, on its front page, reported that lax controls undermined the integrity of tests administered by the Educational Testing Service, we were retained by ETS to review its security procedures from top to bottom.  We examined every aspect of test administration, including the creation of test questions, ETS’s campus security, the printing of tests, the shipping of tests to test centers, policies for storage of tests prior to test dates, the proctoring of tests and the return of tests for scoring.

Investigations and Integrity Services
When a former member of Kmart’s real estate division was indicted by a federal grand jury on charges of mail fraud, Kmart retained us to investigate the activities of the real estate division and its wholesale buying operations.  We conducted a major investigation, examining Kmart’s relationships with attorneys, brokers, property developers, manufacturer’s representatives and product vendors.  As a result of the investigation, several arrests and convictions were obtained in connection with corrupt property transactions, service contracts and vendor relationships.  We helped rewrite Kmart’s internal employee integrity policy, wrote Kmart’s first vendor integrity policy and instituted a hotline (administered by our group) for reporting misconduct and corruption.

Energy - Suspected Loss of Intellectual Property
The president of the futures trading desk of a major energy company alleged economic espionage and the loss of intellectual property regarding the firm’s trading guidelines and strategies.  He claimed this resulted in multiple trading losses, each in excess of $50 million.  A simultaneous investigation and business controls study uncovered that the losses were actually due to forced trading by the company to reestablish corporate trading risk limits, which were violated by the president’s failure to monitor daily trading activity.  In addition, the business controls study noted a number of control weaknesses that could have allowed employees to leak trading information and other intellectual property information to outsiders on a timely basis, allowing others to profit from the company’s trading activity. 

Energy – 2+2=3
Convinced that employees were stealing product after a series of customer complaints about delivery shortages, a large petrochemical company launched an investigation.  A review of the control procedures revealed no significant weaknesses and uncovered no evidence of employee malfeasance.  However, tests of the control system revealed the source of the shortcomings.  The company had recently started using a new procedure to blend its products.  The components were measured separately and the quantities were simply added together on the customer’s bill of lading.  Testing the blending procedure identified an unanticipated chemical reaction that caused the volume of blended product to shrink.  (In this case, 2+2=3, not4).  By billing customers based on measurements taken after blending, complaints ceased and the “shortages” disappeared. 

Chartered Financial Analyst Exam Program Controls Review
The CFA, a global professional certification organization discovers weakness in the integrity of its exam Development and administration processes. During the course of a year long study we evaluated the exam Program controls, developing and facilitating the implementation of strategies and tools to strengthen the Organization’s foreign competitors from stealing proprietary information and executing hostile activities designed to destroy the integrity of the exam program.

Manufacturing – Missing Inventory
A major manufacturing company with extensive logistics operations noted extensive losses of inventory at Distribution centers around the country. A business controls review examine management, operations and physical security at 20% of the distribution enters around the country. Significant control weaknesses, inefficiencies, resulting in the write-off of inventories, were noted. Controls to improve physical security and enhance operations, inventory control, shipping and receiving, driver integrity, etc. were implemented.

Worldwide Narcotics Manufacturing Monitoring – Purdue Pharma OxyCotine
Beginning in early 2000, Purdue Pharma (“PH”) the developer and manufacturer of the miracle drug Oxycotine (“Oxy”) began to learn that its product was being diverted to illicit use throughout the United States. Local, State and Federal law enforcement, with assistance from PF and our team, began to battle the problem of the diversion of Oxy by organized drug dealers. This drug, the first of its kind, is a time –released morphine derivative, developed to provide relief to patients suffering chronic pain. Because of its morphine base, this drug is subject to abuse and diversion. Working with Purdue, we began a massive effort in determining the origins of Oxy abuse, investigation of specific incidents of illicit diversion as well as strengthening controls over global manufacturing and distribution of the drug. Beginning in 2001, we assisted the company in responding to concerns of the Federal Drug Enforcement Administration for better controls over Oxy manufacturing and regulatory compliance. In 2003, we teamed with Rudy Guiliani to form the core of an independent monitoring group to ensure that Oxy diversion controls continue to operate in an effective manner. This pharmaceutical product diversion controls and monitoring program has helped to ensure the availability of this miracle drug to those who need it, while ensuring the business integrity of PF and it’s relationships with federal authorities.

Investigations and Integrity Services
Logistics, Inc. had been experiencing substantial losses from its ware house operations. These losses had become so material that a $55M contract had been put at risk. We were brought in to investigate the losses, uncovering a worldwide scheme to broker high tech computer components. As part of our work, we closed down the organized crime group driving this scheme, evaluated the adequacy of logistics’ existing business controls environment, and managed the crises relations with this company largest customer. This engagement resulted in the arrest and conviction of 12 employees involved in the theft and the re-engineering of Logistics’ controls processes. This effort was so successful the Logistics was able to salvage its most important customer relationship which had been threatened by the theft ring.

Corporate Counterintelligence
A prominent energy trading company suffered a material one-time loss. Analysis of this event clearly indicated that significant intelligence related to its trading strategies had leaked to several competitors. This triggered a massive evaluation and analysis of the firm’s business and intellectual property controls environment. Our work uncovered clear evidence of organizational weaknesses and organized competitor intelligence gathering efforts aimed specifically at our client. We developed strategies and tools designed to deter and detect intelligence gathering efforts. This coupled with an ongoing competitor intelligence monitoring program has enabled our client to effectively respond to these types of threats.

Energy
A major international law firm needed to search for assets of a major international oil company that could be attached to satisfy a large arbitration award.  This involved conducting detailed investigations in the U.S. and Europe.  Despite the fact that the oil company had a well-deserved reputation for complex international financial dealings and the use of special purpose entities to shield it from taxes and legal obligations, sources provided key investigative leads that resulted in the successful identification of assets, which were attached to satisfy the awarded.  (BT)

Financial Institution - for Victims of the Holocaust
In late 1996, Paul Vocker, Chairman of the Independent Committee of Eminent Person, announced the Committee’s “mandate and instructions for the investigative audits of dormant accounts, financial instruments, and other assets deposited in Swiss banks by the victims of Nazi persecution.”  Investigators searched for any previously unreported dormant accounts, financial instruments, and other assets that were deposited in Swiss banks before, during or immediately after the Second World War.  They also examined whether or not bank accounts, which would otherwise have been dormant, were deliberately or illegally in breach of fiduciary duties.  Forensic accountants encountered unprecedented historical and physical challenges during the searches, compiling findings in an unprecedented complex database.  On December 7, 1999, The New York Times reported that the “three-year audit of the Swiss banks found records of 54,000 accounts that were probably linked to victims of Nazi persecution.” (JLV)

Financial Institution - Travelers’ Checks
A federal credit union discovered the loss of several thousands of dollars in travelers’ checks during an internal audit.  A financial investigation resulted in a dead end, partly due to the lengthy time between audits.  However, the investigative team noted a weak business controls environment, resulting in a broad business controls study and subsequent business controls implementation project.  This strengthened controls not only at the main branch, but also at field branches throughout the country. (FN)

Health Care - Theft of Inventory
A large metropolitan hospital noticed what appeared to be usually high-volume purchases of an expensive surgical device used in almost all cardiac operations.  Financial investigators found major flaws in the device’s inventory-control procedures.  What’s more, major discrepancies were found among the number of devices ordered, consumed and remaining in inventory.  Further investigation revealed that the manufacture’s salesman had stolen in excess of $600,000 of the hospital’s devices and had subsequently sold the stolen inventory back to the hospital.  (JM)

Manufacturing - Missing Inventory
A major manufacturing company with extensive logistics operations noted extensive losses of inventory at distribution centers around the country.  A business controls review examined management, operations and physical security at 20% of the distribution centers around the country.  Significant control weaknesses, allowing for ease of theft by employees and customers, were uncovered.  In addition, operational inefficiencies, resulting in the write-off of inventories, were noted.  Controls to improve physical security and enhance operations and physical security and enhance operations, inventory control, shipping and receiving, driver integrity, etc. were implemented. (FN)

Corruption - Foreign Government - Construction
In the fall of 2000, the AG (attorney general) of the Republic of Trinidad & Tobago required the services of a forensic accountant to conduct an investigation into allegations of corruption and procurement fraud regarding the ongoing construction of the country’s new international airport.  An interim report was issued within seven weeks on the Friday prior to the country’s general election in December 2000.  The AG’s political party won, but the investigation did not continue.  Shortly thereafter, the AG and two other ministers resigned from cabinet over the inability to obtain funds for the Anti-Corruption Unit.  Consequently, a new election was held in December 2001, resulting in a tie between the two political parties.  The president selected the leader of the former opposition party to be the new prime minister.  Within weeks, the forensic account’s assistance was requested, and the investigation was re-opened.  The subject of several articles in the Trinidad press, the investigation has resulted in the filing of several criminal charges currently before the court. (BM)

Due Diligence - Manufacturing - No Free Ride
A prospective customer of a major car manufacturer offered to buy $130 million in automobiles and car parts.  Because the prospect’s company was relatively new, credit officers could not corroborate most of the background and reference information provided.  The customer claimed its financial condition was robust, with a 30-year business track record and retained earnings exceeding hundreds of millions of dollars.  A closer review of the information provided by the prospective customer revealed that the company’s headquarters were offshore, and that it was created only a few months before making the offer to the car manufacturer.  In addition, the company’s identification documents proved to be fraudulently obtained.  A criminal background search also disclosed that a former company owned by the prospective customer had been involved in fraud and money laundering. (BM)

Employee Fraud - Hospitality - Floating Numbers
Accountants and bookkeepers of a cruise line overcharged customers for food and drinks aboard ship.  At the end of the trip, charges were allegedly credited to the customers’ accounts.  In reality, some of the overcharges were credited to the individual accounts, but most of them were reversed and paid out in cash to the accountants, who focused their scheme on passengers deemed unlikely to notice the overcharge; avid gamblers, drinkers and big family groups were favorite targets.  The scheme produced over $30,000 per weekly trip.  Although management started noticing the apparent trend of overcharges, the fraud went undetected for over one year.  An investigation was opened when the perpetrators became too greedy and unknowingly charged thousand of dollars in alcoholic beverages to children’s accountants.  The investigators recovered over $100,000 in cash, with several thousand dollars also traced to the perpetrators’ bank accounts. (BM)

Investor Fraud - Financial Institution - Unwilling Investors
The owners of a Central American bank created an unregulated parallel financial institution that received deposits from customers of the regulated bank.  The unregulated bank offered tax free-high yield time deposits in offshore accounts, which offered almost three times the going rate for similar accounts in the country.  According to the prospectus, the money was intended for an industry category, with several investment vehicles created to allow investors to invest in local and international ventures.  A financial crisis in the country caused the closure of many companies that belonged to the bank owners.  The payment of interest to the investors was also stopped due to the crisis.  Depositors’ losses amounted to over $180 million dollars.  An internal investigation focusing on the use of the funds revealed that, over the years, most of the funds were diverted to finance the operation of several companies belonging to the bank owners.  These companied were completely depleted by the owners of the bank and did not have any assets left for recovery.  The review also uncovered several schemes used to divert the monies into personal accounts belonging to the owners and several officials of the companies.  The evidence resulted in the identification of millions of dollars in recoverable assets and solidified a criminal case that the government brought against the perpetrators. (BM)

Loan Fraud - Financial Institution - Long Haul Trucking
A leading U.S. financial institution provided a $50 million credit facility to a prominent trucking company, which declared bankruptcy within months.  During the investigation, forensic accountants determined that the CFO had created fictitious journal entries to improve the company’s interim financial statements used in support of the company’s loan application.  The false entries turned a $4 million dollar loss into a $2 million profit.  Utilizing the investigation’s results, the financial institution brought civil fraud charges against the CFO and the firm’s owners. (JM)

Manufacturing - Gold Inventory?
A jewelry manufacturer obtained financing secured by its gold inventory.  The lending institution heard that the manufacturer was on the verge of bankruptcy and asked for an investigation of its loan collateral.  A surprise inspection by forensic accountants revealed a bare gold vault, and subsequent investigation showed numerous false inventory statements made to the bank by the manufacturer.

Manufacturing - Seafood Processing
A major bank requested a forensic investigation of a sea scallop processing company.  The company and its owner had borrowed $10 million.  When the company owner disappeared, the bank began to question the firm’s inventory and accounts receivable collateral.  Forensic investigators revealed that the collateral was significantly overstated through false sales records and the creation of phony physical inventory.  Additionally, the owner siphoned equipment and assets from the company when eh fled the country to establish a similar operation in South America.  The investigation lead to a major settlement with the company’s outside accounting firm for malpractice.

Management Fraud - Financial Institution - A Family Business 
A senior vice president of marketing for a major bank was accused of committing a multi-million dollar fraud against the institution.  The bank’s insurance company asked forensic accountants to assess the extent of the fraud and the validity of the initial fidelity bond claim filed by the institution.  Forensic reconstruction of the fraudulent schemes perpetrated by the bank executive uncovered several schemes to commit fraud.  Most of the schemes involved family members who had established companies that were allegedly providing services to the bank.  Not only were the services never provided but their charges averaged double the amount of what companied would normally charge.  These schemes continued for several years with several variations because of family-related changes.  For example, after two years of using a front company owned by the executive’s son-in-law, the company abruptly stopped providing services; the son-in-law and daughter had divorced.  When his younger daughter started college, a new company was added to the suppliers’ list to cover her tuition expenses.  The documented fraud amounts to more than $10 million over seven years.  By tracing funds into several companies, a significant amount of assets were uncovered and later recovered as part of a settlement. 

Manufacturing - Addictive Business
A multinational manufacturer of personal products, facing multi-million dollars in government fines for the alleged abuse of import/export duty subsidies, recruited a forensic accountant for assistance.  The company was also undergoing a criminal investigation because illegal drugs had been seized in some of its shipments.  The company had recently endured difficult labor disputes, resulting in costly security breaches and production-line sabotage, including metal particles inserted in personal consumption items and use of the company’s product packages for illegal-drug trafficking.  An internal investigation established that the former import/export manager had purchased the rights to receive the duty subsidies from a number of manufacturers and exporters at a discount to secure subsidies for the company.  Although this practice was accepted by the government, some of the companies, from which the rights were bought, were involved in trafficking of illegal substances out of the country.  These companies were using the client’s legitimate operations to secure legal export documentation.  Investigators also established that most of the penalties being assessed by the government for non-payment of duties related to shipments made by unrelated front companies that used the export permits of the manufacturer to legitimize their operations.  (BM)

Manufacturing - Family Business
The owners of a manufacturing company in Mexico called in forensic investigators to look into a new competitor that offered virtually the same product line at 40% less.  Located just a few miles away from the client’s main manufacturing facility, the competitor manufactured products virtually identical to the ones produced by the original company.  Investigative review disclosed that the brother of the wife of the facility’s general manager owned the competing company.  An inspection of the product revealed that it was not just very similar to the product manufactured by the client-it was identical.  An internal investigation disclosed that the quality control manager and general manager had colluded to classify, on average, 4% of the total production as “rejected items.”  An investigation of the increasing price of raw materials also disclosed that a significant portion was being diverted to the competitor’s nearby plant. 

Manufacturing - Embezzlement by Dead Controller
After the controller of a company died, a client heard allegations of wrongdoing by the deceased controller.  Investigation revealed that the controller, who had had complete and unchallenged domination over all company financial transactions, had stolen approximately $375,000 from the organization.  Through cleverly disguised wire transfers, he diverted company funds to personal business bank accounts.  The investigation became the foundation for recovery through the company’s employee fidelity policy.

Money Laundering – Manufacturing - Black Market Scare
Accused of money laundering and drug trafficking, the owner of a major car dealership in South America had an impeccable reputation; the business had been owned by the family or over 70 years.  Due to significant restrictions in foreign currency exchange in their country, many legitimate businessmen turned to the unregulated parallel currency exchange markets, which usually exchange monetary instruments from U.S. dollars into local currency.  Black market traders are literally intermediaries between people with monetary instruments in local currency and the denomination wanted.  The dealership owner bought checks in U.S. dollars to pay for a major importation of automobile parts, but the checks ended up being deposited into a bank account of a company used as a front by drug traffickers.  Law enforcement had been monitoring this bank account for months, and they that they had finally identified the real owner of the account.  Only through forensic reconstruction of the currency exchange transactions in the company, thorough reputation due diligence and interviews with several of the currency traders were law enforcement officials convinced that the automobile dealer was an unknowing participant in the transaction. (BM)

Wholesale - Covering Illegal Cash
The U.S. distributor of computer hard drives to South America was suspected of money laundering.  Investigators revealed numerous fictitious sales to cover the laundering of millions of dollars in illegal cash funds.  Additionally, the owner would accept deeply discounted cash payments on trade accounts receivable.  He would not record receipt of the cash and would subsequently write off the receivable as uncollectible.  The company owner was subsequently indicted and fled the U.S.

Post Closing Disputes - Retail - Auto Rental Agency
Shortly after acquiring a regional car agency, a major auto manufacturer suspected foul play by the sellers, who remained after the sale to manage the agency.  Financial investigators uncovered evidence of major fraud by the sellers, including theft of company inventory, defrauding of customers, financial statement fraud and the disguising of $400,000 in home renovations charged to company as repairs to agency facilities.  The investigation resulted in a $20 million reduction in the purchase price and three-year prison sentences for two of the sellers.

Theft of Corporate Assets - Manufacturing - Sticky Issue
An engineer in charge of the production of adhesives sold proprietary manufacturing formulas to the competition by assisting with the establishment of a parallel manufacturing facility that produced the same product under a competitor’s name.  Investigative results disclosed that the suspect had recently acquired a business in cash.  In addition, his two teenage children had recently had tuition paid for a highly regarded university.  After being confronted with the evidence, he confessed and served as a witness against the competitor.  The court issued an injunction to stop the competitor’s production.  However, that proved to be unnecessary.  After several attempts to manufacture the product, production had to be abandoned because the product hardened in the pipelines of the new machinery, causing losses in the millions.  (BM)

Training - Manufacturing - Fraud Awareness
The internal audit department of a prominent Fortune 500 manufacturing company sought training in fraud auditing for its staff.  The one-week training session provided the IA staff with significant fraud-auditing skills and sharpened their professional skepticism, allowing them to uncover several major ongoing frauds.  Professional investigators then conducted a joint investigation with the IA staff, resulting in the elimination of fraudulent activities and dismissal of almost a dozen employees, including several high-level managers and vendors. (JLV)

Corporate Intelligence & Due Diligence Services
Engaged on behalf of a large international financial institution to conduct a due diligence investigation into the backgrounds and reputations of the management team of the mid-sized company involved in the finance of natural resource investments which they were considering underwriting. Our inquiries determined that one member of the management team had previously run afoul of financial regulatory bodies and was barred from the industry. This intelligence allowed our client to make a better informed decision regarding the investment and spared them potential great embarrassment.

Corporate Intelligence & Due Diligence Services
Outside corporate counsel for a small, but growing, publicly traded company engaged us to vet a group of three proposed new directors. We conducted the due diligence only to find that one of the proposed directors had a serious discrepancy in their curriculum vitae. Our client was able to find a new, more suitable, director to replace the one with the questionable resume.

Corporate Intelligence & Due Diligence Services
Engaged on behalf of a publicly traded high technology company to gather information and intelligence relating to a group of dissident investors seeking to wage a proxy contest to gain control of the board. Our efforts focused on scrutinizing the investor group and potential board members to assist our client in determining strategy as well as developing a sound defense. We identified evidence that the investor group was acting in concert with another investor group, previously undisclosed. In addition, we developed critical intelligence relating to the operational tactics and reputation of the investor group.

Corporate Intelligence & Due Diligence Services
A large financial institution considering investing in a series of hedge funds engaged us to look into the background and reputations of the hedge fund managers. Our research revealed that two of the hedge fund managers had histories of violations and censures with financial regulatory bodies as well as an unusual amount of litigation involving unhappy clients.

Corporate Intelligence & Due Diligence Services
Engaged by a private equity group to conduct an investigation into the background of one of their potential investors. Our client had heard that the potential investor may have had a prior criminal history involving financial fraud. We confirmed that the rumor was correct and provided documentation to that effect. Armed with this information, our client declined to accept the potential investor into their new fund.

Competitor Intelligence Services
A privately held manufacturing concern engaged us to develop intelligence on their principal overseas-based competitor. Our client was seeking to determine what their competitive strategy should be in relation to the principal player in the industry and were looking to learn as much as they could about the company, its management and its strategic growth plan. Our efforts not only helped our client understand this particular competitor more thoroughly, but also enabled them to develop their own long-term strategic plan.

Corporate Investigations & Litigation Support Services 
A major US law firm based in New York representing a client in litigation tasked us with identifying, locating and conducting select interviews of potential witnesses related to their case. We were successful in this endeavor, which included potential witnesses in Canada, the US and the UK, assisting the law partner in their discovery process.

Corporate Investigations & Litigation Support Services 
Engaged by a mid-sized law firm to conduct an asset search on potential defendants in a lawsuit they were considering filing on behalf of one of their clients. Our efforts uncovered significant real estate interests that would be vulnerable in the event of a judgment on behalf of their client, allowing them to proceed with the litigation.

Corporate Investigations & Litigation Support Services 
Corporate outside counsel for a foreign-based, privately held corporation engaged us to look into allegations of fraud, embezzlement and kickbacks on the part of the management of their US-based subsidiary. Our efforts proved that there was collusion between in-side employees and outside vendors. This investigation resulted in an overall re-organization and review of business controls at the US subsidiary.

Corporate Investigations & Litigation Support Services 
Engaged by counsel to develop intelligence on a group of plaintiffs suing their client. We were tasked to profile and develop information on prior litigation history and tactics used on the part of the various plaintiffs. Our efforts revealed critical intelligence that provided our client with ammunition to defend against the claims of several plaintiffs.

Corporate Investigations & Litigation Support Services 
Inside corporate counsel engaged us to conduct an internal investigation of alleged employee misconduct. A mid-level employee was anonymously accused of receiving kickbacks from vendors of the company. Our investigation focused on the suspect employee, including a forensic review of his company provided computer hard drive and an external investigation of his lifestyle and background. Our efforts revealed that the suspect had, in fact, been receiving services from an outside vendor, paid for by the client company. We utilized forensic accounting experts to develop a complete picture of the loss as well as the basis for a proof of loss claim under the company’s fidelity insurance policy.

Corporate Security Services 
After a senior manager of a large real estate investment concern began acting erratically and making threats, he was put on paid leave, pending an inquiry. Engaged to conduct the investigation, threat assessment and provide 24-hour protection for specific co-workers. When our client decided to terminate the manager for cause, we provided additional security during and after the termination as well as liaison with local law enforcement.

Corporate Security Services
Engaged by a mid-sized financial institution to conduct a security audit of their office facilities as well as review their security and crisis policies and procedures. Our report identified a number of sensible security upgrades that could be implemented without tremendous cost or change in corporate culture.

Corporate Security Services
A small publicly traded company engaged us to provide security during their annual meeting at a large metropolitan hotel. We conducted an advance review, provided liaison with hotel security and on-site plain clothed security personnel to help the annual meeting go smoothly.

Corporate Security Services
Engaged by a large research facility to conduct random physical facility penetration tests. Our security consultants demonstrated several vulnerabilities in this otherwise highly secure facility which our client was able to address with minimal disruption.

 

 

 

 

 

 

 

 

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