Case Studies

Due Diligence

  • The real estate investment arm of a global financial services company routinely retains IGI and The Lenzner Firm to conduct due diligence on individuals and entities involved in potential developments. In these matters, we have identified leveraging information the client used during deal negotiations and flagged issues that may deter or inform the client’s potential deals, including regulatory violations, evidence of fraud, financial insolvency and extensive litigation. For example, in a recent due diligence on a development firm, we identified a former executive with links to ongoing FBI and IRS public corruption investigations. This executive allegedly compensated a local official from whom the development firm later purchased municipal property. Aided by this information, our client was able to make an informed choice about their involvement with the developer.
  • For attorneys representing a major professional sports league, IGI conducted extensive due diligence on a partnership of two potential franchise owners to determine whether the prospective team owners met certain thresholds for franchise ownership. Information that IGI obtained helped the league to determine that one of the prospective team owners did not meet league-stipulated financial criteria. The deal proceeded once the investor was asked to withdraw from the franchise bid.
  • For a prominent hedge fund, IGI conducted hundreds of due diligence investigations over several years, providing information to fund managers to support their risk and return calculations. Subjects of the investigation included prospective special-situation investments, as well as companies in which the fund was considering private equity and mezzanine-level investments.
  • A New York financial institution retained IGI to investigate the background and reputation of its potential customer, a prominent family in the business community of a Latin American country, and to focus on the sources of the family’s assets, including the possible influence of a former government official believed to be related to the family. IGI’s investigation, including in-country inquiries, determined that the government official in question was not related to the client’s potential customers. Further research and inquiries helped the institution to assess the reputational risk of the new customer relationship.
  • IGI was retained by a California-based firm with offices worldwide to investigate the bona fides and business reputations of the owners of manufacturing facilities in Hong Kong and Southeast Asia. IGI conducted on-site investigations, using local affiliates in three countries, to develop profiles of the subjects and their affiliations with other persons and entities in the region.
  • A U.S. financial services company retained IGI to provide due diligence with a focus on money laundering concerns related to a large book of foreign correspondent-banking relationships the client was acquiring from another bank. Our due diligence effort examined more than 200 banks in 35 countries.
  • IGI assisted a client considering a joint venture with a foreign entity to develop oil and gas properties in and off the coast of several West African countries, including Nigeria and Cameroon. The IGI investigation focused on the foreign entity’s relationships with officials of the African governments and the possibility of a potential FCPA “contamination” on the assets. IGI’s investigation in Africa and in the foreign entity’s home country provided our client with in-depth profiles of the relevant officials and consultants of the African governments, as well as of the foreign entity.
  • On behalf of a firm in the construction industry, IGI has conducted multiple FCPA-focused due diligence investigations on potential joint venture partners, clients and vendors located overseas.  In these matters, we supplemented online and on-site public records and database research with in-country interviews and human intelligence gathering to provide best-practices FCPA compliance and business due diligence processes to search for “red flags” from regulatory, reputational and legal standpoints.  Our work for this client has included due diligence investigations of entities and individuals based in Eastern Europe, Central America, and the United Kingdom.
  • A U.S. financial services company with global operations retained IGI to provide investigative due diligence and consulting on internal controls in order to conform to Bank Secrecy Act and USA Patriot Act compliance requirements. IGI performed extended due diligence on a large book of foreign correspondent banking relationships the client was acquiring from another bank; our due diligence examined 220 banks in 35 foreign countries. Concurrently, we created on behalf of the client a proprietary suspicious financial transaction monitoring system to identify and flag potential money-laundering, tax evasion and terrorism financing-related transactions, which resulted in the discovery of billions of dollars in suspect transactions. On behalf of the client, IGI drafted Suspicious Activity Reports (SARs) and facilitated reporting to the relevant U.S. government agencies.