May 27, 2020

When making important business and legal case decisions, it is critical to undertake an appropriate Investigative Due Diligence research initiative.  Investigative due diligence refers to the database research and analysis of an individual or organization done in preparation for a business transaction or legal litigation strategy.  Concealed or misrepresented facts can leave companies vulnerable to compliance and potential legal risk and financial loss.

Investigation Due Diligence can help mitigate risk and deliver peace of mind especially in any Legal Litigation case.  This can save clients from substantial monetary and legal case losses, as well as reputational damage.  Investigative due diligence is necessary for determining the practicality of an investment, merger, acquisition, partnership or other business relationship and any legal litigation case and dispute.

Investigative Due Diligence database research can be conducted on individuals as well as varied organizational entities. The initial investigation due diligence process focuses on obtaining information through extensive public records and proprietary databases.

Individuals may misrepresent qualifications and biographical information, which makes the verification of credentials and employment history imperative.  Additionally, Professional licenses should also be confirmed, making note of potential sanction or disciplinary histories associated with the license.  A subject’s business affiliations can indicate ownership interest in a company that has had financial difficulties, an affiliation that may have been involved in fraudulent behavior, or potential conflicts of interest.  A review of IRS filings concerning charitable giving/foundations can expose misappropriation of funds and identify concerning red flags.  Investigative Due Diligence research can also identify contributions made by an individual to a political candidate, committee or party as recorded by the Federal Election Committee.

Investigative Due Diligence database research will be conducted to identify if there is any mention in a criminal action or questionable past.  This due diligence research should be performed at the federal, state and county levels where the individual has resided and conducted business.  Civil litigation searches are another important aspect of investigative due diligence research.  Much like criminal due diligence research, civil litigation searches should be performed at the federal, state and county levels where the party has resided or conducted business. Being the subject of a lawsuit may not be adverse by itself, but it is of utmost importance to determine the types of cases in which the subject is involved.  Discovery of a litigious history involving matters such as embezzlement, tax evasion, fraud or other financial crimes can potentially save a client from a failed investment or potential lawsuit.

It is imperative to paint a picture of an individual or entity’s financial background accurately before a business relationship has commenced or a legal action is taken. Investigative Due Diligence research must be performed for any bankruptcy records, judgments, tax, and Uniform Commercial Code (“UCC”) liens in which the individual or entity is named as a debtor.  In addition, regulatory searches can help determine if an individual or entity has been the subject of an investigation or been sanctioned by an authority such as FINRA or the SEC.

Today it is vital to provide due diligence research of any adverse media and social media as a critical component in any Litigation case.  A comprehensive evaluation of news and trade publications to identify derogatory or adverse press or news articles.  Adverse media research can provide insight on an individual or entity, especially in business dealings, that did not result in civil litigation.  Social media research is important focus point of due diligence research to identify additional information about the associates, activities, and the history of a subject across multiple platforms.

Certainly, litigation costs can be overwhelming, both in legal expenditures and related business disruption.  Identifying and locating critical evidence and testimony can make the difference between winning and losing a case.  In many legal cases the very future of a company has been at stake and Investigative Due Diligence Research reports enables legal counsel teams to prevail.  There are cases where corporations have suffered billion-dollar fraud, infringement of intellectual property rights, damage to their corporate or personal reputations or persecution from false claims of wrongdoing.  Legal teams need to utilize expertise in Investigative Due Diligence Research for a vast array of public records and private data sources to get to the heart of a case swiftly and effectively.

Whether you are considering a lawsuit, or need to defend against a lawsuit, or are a Law firm supporting a client in litigation, Modevity’s Investigative Due Diligence litigation support can assist.  

Modevity Investigative Due Diligence Litigation research support can help your legal team through its legal cases by verifying or refuting basic information, credentials, accomplishments, connections, affiliations, business reputation, involvement in prior litigation, and more.

Author: Tom J. Canova, Co-Founder, CMO Modevity

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May 27, 2020