The cost of inadequate background checks is higher than doing it right

An estimated 7 million felony conviction records — nearly 25 percent of all felony convictions — are missing from a key federal database that’s used to conduct background checks prior to gun sales, according to a recent Wall Street Journal report.

Due Diligence Consulting (DDC) executive background checks use proprietary research methods
Millions in missing felony records in key database shows importance of DDC’s proprietary background check methods.

Millions of missing records from the National Instant Criminal Background Check System (NICS) used by the FBI and gun retailers have resulted in thousands of firearm sales that should have been blocked, based on statistics compiled by the WSJ. Gaps in the database have occurred for a variety of reasons, including data matching problems and state and local jurisdictions that don’t share their data.

The WSJ story underscores what Due Diligence Consulting (DDC) has long known: criminal and other databases relied on by law enforcement, law firms and private investigators have gaps in coverage. DDC’s proprietary research process starts where our competitors finish. DDC uses multiple databases in its background investigations and researches a person or entity everywhere they have had a contact or connection, collecting data to the most original source level possible.

Recently, DDC discovered domestic violence charges at a local court house that were absent from commercial databases and used by law firms and private investigators. A research service used by law firms missed the information that DDC found for its client.

We call. We check in person. We submit written records requests. Our proprietary research methodology is based on decades of experience that generate differentiated results missed by others. We provide our clients with the critical information that they need to make decisions on investments and key executives.

The Harvard Lie

It’s only March and already DDC has discovered a public company CEO who has lied about having a Harvard degree.

man-review-his-resume

To most people, it seems absurd that someone would lie about having a Harvard degree and presume to get away with it. But every year for the past 10 years running, DDC has discovered at least one Harvard bluff during the course of a detailed executive background check. What’s more extraordinary is that these public company executives have invariably already been vetted by other background check firms, executive search firms, law firms and journalists. Repetition of the misrepresented Harvard degree adds to the credibility of the lie over time. Certainly, others have checked this out, the thinking goes.

At DDC, we check everything — every time. Public companies, investors and law firms hire DDC to conduct thorough executive background checks to mitigate reputational risks and protect credibility. A misrepresentation by a public company CEO or board member could leave a company vulnerable to an attack by an activist shareholder, market-moving adverse publicity and loss of investor confidence.

Our clients rely on our detailed, thorough checks to spot omissions and misrepresentations like a Harvard lie. And that’s the truth.