Success Stories in Business Intelligence and Financial
Investigations
From the files of Cachet International, examples of success in business intelligence, due diligence, M&A support, executive screening, asset tracing
and more.
In search of $400 million moved offshore, we pierced 110
offshore firms and traced over $328 million. As a result, the parties negotiated
a settlement more favorable to our client.
A client was concerned about possible violations of the Foreign
Corrupt Practices Act, as its contract with a foreign energy company called for
an annual $300,000 payment to a Panamanian bank account. In tracing the funds to
a Swiss company, we found that the payment went to our client’s contracting
officer.
We traced $2.7 million from Russia to Cyprus to the Caribbean to
determine that an officer of our client’s company was diverting funds to his
competing company.
For a Fortune 500 Internet company, we conducted
inquiries in Brazil to determine if recently resigned company executives were
violating their “non-competition” clauses. They were not, and our client was
able to continue their cooperation with peace of mind.
A major U.S. firm requested a study to determine if they could
successfully compete in a wholesale and retail product market in Korea. They
eventually determined that they could better enter this market as part of a
joint venture. We then successfully screened several potential candidate firms,
one of which was later successfully selected as a partner.
Asked to confirm that a vendor in Russia could actually produce
the materials that a new contract required, we made discreet inquiries at the
local plant and found that the plant could produce only 50% of its claimed
capacity and that it hoped to coerce our client into funding new production
equipment once the contract was signed. We then helped our client find a more
reliable vendor in Russia.
On behalf of a major U.S. bank, we conducted due diligence
inquiries on 33 correspondent banks throughout Latin America that were being
upgraded to “representative status.” We did so successfully within four weeks.
Four of the banks were found to be unsuitable, and local regulatory officials
later closed three of these banks.
Cachet International conducts more than 250 due
diligence cases a year for the
largest U.S. banks and stock brokerages to satisfy Patriot Act requirements and
anti-money laundering laws.
Our client considered several Latin American companies for
possible acquisition. We made inquiries regarding the companies, their managers
and owners, as well as their strengths, weaknesses and financial positions. Once
the client selected its target, we obtained information on the negotiating
styles of the owners and their lawyer. The acquisition was successful, and our
clients achieved a 15% savings.
Another client wished to ensure that all members of a newly
acquired firm in Southeast Asia were competent and honest. We found three key
managers to be dishonest (they insisted on using only vendors that their family
controlled), and our client was able to remove them without any negative
repercussions for the newly acquired firm.
Cachet International has developed the “Intelligence
Advantage,” which provides basic, key intelligence on merger and acquisition
targets early in the process. This information confirms essential data, provides
valuable negotiating information, and almost invariably leads to improved prices
for the acquiring company.
Investigated over 200 potential employees in India for major
U.S. banks, with work completed within four weeks.
Investigated the background of a Brazilian businessman who had a
very prominent family name and was being considered as the representative for a
Fortune 500 firm in Latin America. Our inquiries found that the Brazilian
businessman was estranged from his family, had a history of financial fraud
allegations and convictions, and was under police surveillance for possible
money laundering.
Investigated a European businessman who was nominated to the
board of directors of a major U.S. company. Our inquiries showed that the
businessman was under investigation by tax officials in three countries.
We have successfully supported several large law firms in
class-action litigation.
We have successfully located and conducted preliminary
interviews of potential witnesses in the U.S. as well as Latin America, Russia,
Europe, the Middle East, and the Caribbean.
We have successfully conducted discreet background
investigations on opposing witnesses and expert witnesses in the U.S. as well as
Europe, Russia and Latin America.
“If Only They Had Known ...”
A few of our clients have learned – the hard way – that what
they didn’t know could and did hurt them.
A Taiwanese LCD screen producer suddenly quit delivering its
products after major U.S. retail firms had paid over $20 million in advance. The
producer also stopped paying rebates and answering its telephone. Our visit to
this “firm in Taiwan” found a rented supply closet with two telephones and a fax
machine. The company had never been registered, and the names of the company
officers were found to be fictitious.
After spending over $700,000 in legal, consulting and
administrative fees, a U.S. chemical company asked us to investigate its new
joint venture partner, which reportedly had a large office, factory and
warehouse. We found that the office, factory and warehouse did not exist, and
all three telephones were answered in a trailer in Illinois. A preventive
investigation into the background of this company prior to doing business with
them would have saved our client $700,000.
An anonymous source accused the CEO of a newly acquired Asian
manufacturing plant of being involved in fraudulent activity. Our inquiries
showed that the executive was honest, well respected and locally connected, and
that the complaint actually came from an employee that had been fired for theft. |
