We’ve had a few clients ask us if we would have found red flags in a check on Martoma if they had engaged DDC to research him prior to his recent insider trading case (a jury found him guilty).  We reflexively said yes, based on our process-driven approach and our experience with highly detailed due diligence research.  But then we asked ourselves, how can we know for sure?

So we ran him through our 62 page, single-lined, process, omitting media and other search results that related to the insider trading case.  Results were as we expected. There are enough red flags to raise concerns for any prospective employer or investor.

DDC found that he changed his name, after his father changed his name, after Matthew left Harvard Law.  DDC found an obscure article written by Martoma that identifies himself as a student at Harvard Law.

DDC speculates that Martoma may have asked his father to change his name so that he would have a plausible reason for doing so later, and enhance the propsects of successfully covering any connection to Harvard Law and his expulsion from that institution.

There was a great Wall Street Journal article this week on Martoma and the benefits of comprehensive background checks.  Read more here.

The bottom line is a quick and inexpensive background check only provides a snaphot of any person or company and rarely tells the whole story. A detailed research like the ones DDC provides would have alerted an investor or employee to the multiple issues in Martoma’s background.

Peter Barakett, President

DDC Investigations LLC

DDC – Due Diligence Consulting LLC