Index
A
accuracy, 33
active lawsuits, 131–132
activist hedge funds, 65–67
Agape World Inc., 57
age discrimination, 35
American Recovery and Reinvestment Act of 2009, 103
analysis of information, 101, 145–158
archives of websites, 62
Asia, 46
asset investigations, 121–129
Association of Certified Fraud Examiners, 103
B
backdating options, 66
background checks
as deal-killers, 3
conducting, 3–4
corporate records, 19
court records, 7
criminal records, 7
frequency of, 63
frequency recommended, 8
mandates for, 4
recommended frequency, 26
what they find, 15–21
what to include, 7–9
BaFin, 110
bankruptcy petitions, 28
Bayou Hedge Fund Group, 169–170
Bernard L. Madoff Investment Securities, 160
Better Business Bureau (BBB), 133, 175
blogs, 64
bottom-line blockade, 2
bragging, 56
Brazil, 51–52
C
California Sex Offender Registry, 39, 174
campaign contributions, 175
career history, investigating, 35
Cayman Islands, 127
CBOE (Chicago Board Options Exchange), 152, 174
Certified Public Accountant (CPA), 151
CFTC (Commodities Futures Trading Commission), 152
Channel Islands, 127
character, 7–9
Chartered Financial Analyst, 151
chat rooms, 64
Chicago Board Options Exchange (CBOE), 152, 174
child abuse, 39
ChoicePoint, 155
co-ops, 109
Code of Ethics policy, 133
college degree verification, 20
Commodities Futures Trading Commission (CFTC), 152
Companies House (United Kingdom), 47
competitive intelligence, 65–72
complaints from consumers, 175
computers
imaging, 84
policies about, 71
spyware, 86
conducting background checks, 3–4
conducting interviews, 29–41, 64, 74–77
construction companies and organized crime, 115–118
consumer complaints, 175
consumer credit reports, 98, 155
corporate crime, 170–172
corporate discrimination, 35
corporate fraud, 103–106
corporate governance, 4
corporate records, 19, 72, 146
Corporate Resolutions, Inc., 2, 20
Cosa Nostra, 113
Cosmo, Nicholas J., 57–59
court records, 7, 25, 27–28, 64
CPA (Certified Public Accountant), 151
credentials, exaggerated, 15, 20–21
crime
corporate, 170–172
organized, 113–120
white-collar, 120
criminal background, 57
criminal behavior, 89–92, 94–101
D
degree verification, 20
Delaware Secretary of State, 174
Department of Education, 88
Department of Justice, 48–49
discrimination, 35
disorderly conduct, 140
domain name registrations, 129, 176
DowJones, 93
Dreier, Marc, 15–16
due diligence, 1
E
E.F. Hutton, 114
EEOC (Equal Employment Opportunity Commission), 35
employees
finding former employees, 35–38, 74, 77, 126, 136
whistleblower hotlines, 103–106
employment history, investigating, 35
Enron, 105
Environmental Protection Agency (EPA), 135, 176
Equal Employment Opportunity Commission (EEOC), 35
Equifax, 155
Ethics Hotline, 64
exaggerated credentials, 15, 20–21
Experian, 155
expunged records, 153
F
FAA (Federal Aviation Administration), 99, 128, 175
Facebook, 34–35
Fair Credit Reporting Act (FCRA), 98, 155
FCC (Federal Communications Commission), 135, 176
FCPA (Foreign Corrupt Practices Act) of 1977, 48–49, 51, 53
FCRA (Fair Credit Reporting Act), 155
FDA (Food and Drug Administration), 135
Federal Aviation Administration (FAA), 99, 128, 175
Federal Bureau of Prisons, 39, 41, 174
Federal Communications Commission (FCC), 135, 176
Federal Election Commission, 128, 175
Federal Trade Commission (FTC), 132, 176
fidelity insurance, 77
Financial Crimes Task Force, 20
financial due diligence, 1
Financial Industry Regulatory Authority (FINRA), 45, 134, 152, 173
Financial Services Authority (FSA), 47, 152, 173
Finding former employees, 35–38, 74, 77, 126, 136
FINRA (Financial Industry Regulatory Authority), 45, 134, 152, 173
flock funding, 2
FOIA (Freedom of Information Act), 68–70
Food and Drug Administration (FDA), 135
Foreign Corrupt Practices Act (FCPA) of 1977, 48–49, 51, 53
Form ADVs, 134
fraudulent wire transfers, 92
Freedom of Information Act (FOIA), 68–70
FSA (Financial Services Authority), 47, 152, 173
FTC (Federal Trade Commission), 132, 176
G–H
Gang Land News, 118
General Services Administration (GSA), 135, 175
German Federal Financial Supervisory Authority, 110
global investigations, 43–53
Godfather, 113
Google, 145
GSA (General Services Administration), 135, 175
health problems, 32–33
hedge funds, 65–67
hidden assets, 127
hip pocket sources, 39
Hong Kong, 47–48
I
imaging computers, 84
ImClone, 55
Insider Trading database, 66, 177
insurance
fidelity insurance, 77
fraud, 77
key man policy, 32
theft, 77
insurance fraud, 139
intellectual property, 129
Internal Revenue Service (IRS), 176
Internal Security Association, 120
international investigations, 43–53
international sources, 47
InterPacific Capital, 167
interviewing people, 29–41, 64, 74–77
IRS (Internal Revenue Service), 176
Israel, Sam III, 169–170
IT staff, 88
Italian Mafia, 114
J–K–L
key man policy, 32
Know Your Customer guidelines, 4, 119, 142
Latin America, 52
lawsuits, 131–132
legal due diligence, 1
LexisNexis, 15, 19–20, 72, 93, 124, 145–146, 149, 157, 177
liars, thinking like, 11–14
LinkedIn, 35
Luxembourg, 127
M
mafias, 113–120
Marino, Dan, 169–170
Mauritius, 127
media, 116
media databases, 149
media research, 93
media sources, 64
Megan’s Law, 39
Middle East, 46
military service, investigating, 175
monitoring
companies, 64
executives, 64
mortgage records, 25
N
National Archives and Records Administration, 175
National Association of Securities Dealers (NASD), 134
National Futures Association (NFA), 152, 173
National Student Clearinghouse, 20, 61–62, 174
net worth, verifying, 63
New Jersey Secretary of State, 174
New York Sex Offender Registry, 174
NFA (National Futures Association), 152, 173
nonprofit entities, 72
O–P
Occupational Safety and Health Administration (OSHA), 133, 175
Office of Foreign Assets Control (OFAC), 135, 175
organized crime, 113–120
PACER (Public Access to Court Electronic Records), 28, 58–59, 152, 174
past performance, as indicator of future behavior, 23
Patent and Trademark Office, 129, 136
patents, 176
PEMG (Private Equity Management Group), 166, 168
personal judgment, 137, 139–143
personality traits, 30
Petters Company, Inc., 105
Petters, Thomas, 105
pilot’s licenses, verifying, 175
political contributions, 128
political donations, 175
polygraphs, 96–97
Ponzi, Charles, 12
post-acquisition problems, 73–74
post-investment research, 78
preventing fraud, 78
Private Equity Management Group (PEMG), 166, 168
property records, 25, 85, 108–109, 124, 127, 157
property transfers, 150
protecting assets, 123
Public Access to Court Electronic Records (PACER), 28, 58–59
pump and dump scams, 117
Q–R
race discrimination, 35
Racketeer Influenced and Corrupt Organizations Act (RICO), 116–117
The Real Deal magazine, 125
references, 34
regulatory agencies, 132–136
regulatory filings, 64
regulatory issues, 132–136
research
media outlets, 116
media sources, 93
post-investment, 78
strategies for, 145–158
Reuters publications, 93
RICO (Racketeer Influenced and Corrupt Organizations Act), 116–117
Rowley, Coleen (FBI), 105
Royal Dutch Shell Plc, 52
Russian mafia, 118–120
S
Searcey, Dionne (Wall Street Journal reporter), 52
SEBI (Securities and Exchange Board of India), 45
Securities and Exchange Board of India (SEBI), 45
Securities and Exchange Commission (SEC), 45, 134, 152, 173
Securities and Futures Commission (SFC), 48, 174
sex offenders
California Sex Offender Registry, 174
New York Sex Offender Registry, 174
registries, 39–40
SFC (Securities and Futures Commission), 48, 174
Siemens AG, 48
slumlords, 85
The Sopranos, 114
sources
hip pocket sources, 39
international sources, 47
media outlets, 149
spyware, 86
Stanford Group Company, 162–163, 166
Stanford, Robert Allen, 3, 162–166
Stewart, Martha, 55
Sun Microsystems, 52
swindlers, thinking like, 11–14
T
TARP (Troubled Asset Relief Program), 171
tax assessors, 25
telephone calls, 69
theft, insurance for, 77
thinking like a liar, 11–14
Thomas publications, 93
threats, 83–88
three principles of wrongdoing, 86
tip-line, 104
tracking origins of threats, 84–88
trademarks, 176
TransUnion, 155
Trojan software, 86
Troubled Asset Relief Program (TARP), 171
two-person interviews, 76
U–V
U.S. Department of Education, 88, 176
U.S. Department of Justice, 48–49
U.S. Patent and Trademark Office, 129, 136, 176
U.S. Tax Court, 176
Uniform Commercial Code (UCC), 108–109
United Kingdom, 47–48
UTStarcom, Inc., 49
Vendex, 115
verifying net worth, 63
W–Z
Wall Street, 101
The Wall Street Journal, 52, 153
Watkins, Sherron (Enron whistleblower), 105
website archives, 62
wedding announcements, 150
Westlaw, 27, 93, 124, 149, 157, 177
whistleblower hotlines, 9, 103–106
white-collar crime, 120
wrongdoing, three principles of, 86