Case Studies
Case Study 6
A leading American institution acquired a Latin American company. During the closing process, the institution received anonymous information suggesting that one of the key executives of the newly acquired company was involved in fraud. The bank's General Counsel engaged Diligence to determine if the allegations were true and, if so, to gather evidence for possible litigation.
Diligence conducted a discreet, but comprehensive investigation of the executive, including a thorough review of his activities and associates. Using well-placed local contacts within the government, judiciary, law enforcement and the business community, Diligence examined the executive's business practices, financial status, ethics and reputation. Diligence researched the executive's role within his company in detail, including an exhaustive examination of any and all problems the company had experienced during his tenure. The allegations proved to be unfounded and the executive was cleared of any wrong-doing. Subsequently, Diligence was able to trace the source of the anonymous allegation by carrying out a forensic study of computers within the business. The originator turned out to be a mid-level executive that had been fired for falsifying expense accounts.
The key executive remains, to this day, a key contributor to the continuing growth and success of the company.