Director – Sexual Assault and more

DDC was engaged to conduct due diligence research on a company’s senior executives as part of our client’s investment due diligence regime.

DDC found that one executive was recently arrested for sexual assault, assault and public intoxication, all three incidents occurring on separate dates within the same year.  In addition, this person’s probation / parole was modified and they were required to undergo counseling.

The executive had told our client that he had a prior assault charge but that it was dropped and the case was sealed because while he did assault his wife, it was only because he had found out that she was cheating on him.

What’s interesting about this assignment is that in various federated database reports, information on the three arrests were incomplete or potentially misleading (for example, none showed an entry for sexual assault, but some showed 2 assaults, and others only one).  DDC acquired the arrest warrants for each and found that the subject did in fact assault his wife after finding out that she cheated on him and her admission that she did so.  The next day he assaulted her again, including rape, which he immediately admitted when confronted by the arresting officers.  He was arrested much later for public intoxication. DDC did not find any indication that any of the three cases were sealed.  DDC believes that the only way these incidents would be fully discovered would be if a party searched directly in every jurisdiction where the subject has a contact or connection, like DDC does in every instance, rather than relying solely on one or more federated databases (most investigators typically rely on one main federated database).

Peter Barakett

DDC Investigations LLC

DDC – Due Diligence Consulting LLC

Director – False Statement

DDC was engaged to review the Directors of a company supported by several prominent investors / investor groups.  DDC found that one Director had claimed in writing that he had no convictions other than for traffic offenses.  After thorough research, DDC found this person had a DUI approximately 7 years ago in a state other than that which they currently live in.  This record was found outside of the commonly used federated databases.  DDC verified that this was alcohol, not drug, related.

Peter Barakett, President

DDC Investigations LLC

DDC – Due Diligence Consulting LLC

 

Private Company CEO – Bank Fraud

DDC was engaged by a lender to conduct due diligence on the CEO of a private company prior to a loan / financing arrangement in excess of $100 million.  DDC found that the CEO was convicted of bank fraud 20 years ago, and has since left a trail of court cases alleging fraud, misrepresentation and other wrongdoing.  In addition, the CEO made numerous claims in writing to the lender that were false or outlandish and unverifiable.  Finally, the CEO and his companies did not have the proper licenses and regulatory registrations that were required for the business they were engaged in.

The interesting thing about this assignment is that the CEO has a common name and DDC believes he may have taken steps to obscure his criminal record and litigation history online through the use of aliases, different addresses and even different dates of birth.  This assignment was limited in scope due to the client’s budget and our preliminary findings (2 pages of red and yellow flags), but DDC believes this person may have links to organized crime. DDC found several other criminal convictions and incarcerations that may or may not be related to this person (more research was required to definitively determine but our client had received enough information from DDC to make an informed decision).

Peter Barakett, President

DDC Investigations LLC

DDC – Due Diligence Consulting LLC