Categories: Financial Crime

  • Indicted Attorney Identified in Due Diligence Investigation

    Financial Crime

    Mergers & Acquisition Advisory

    Investigative Due Diligence

    Retained in connection with an investment in a proposed roll-up of nursing homes and assistive living facilities.  The proposed investment target was requesting  $100 million to acquire and combine multiple nursing home and assistive living facilities to bring them under a common ownership structure and brand. Comprehensive open source and public record background investigations were performed to provide the investor with negative assurance there were no problems that would prevent the proposed transaction from going forward. One individual who had been identified as the person who had provided the venture with its seed capital had some issues in his background. These initial findings included an indication that his claimed net worth was not consistent with the multiple liens, judgements and bankruptcy proceedings that were ongoing.  Most concerning was a finding that someone with the same name had been indicted by a state Grand Jury in Northern California but for which no further details were available. This finding came 48 hours before the deal was scheduled to close. The closing was postponed pending further investigation.  A field investigator was deployed to attempt to gather further information. The investigator confirmed that the indicted individual was the same person seeking investment capital.  The investigation further revealed that the indictment was in connection with this person's law practice in which he was charged with absconding $3 million in funds held in escrow for his law clients, that his law practice had recently declared bankruptcy and the state's criminal case was on hold pending the forthcoming federal indictment for fraud and money laundering.  During the pendency of the investigation, a federal grand jury did in fact charge the attorney with fraud and money laundering. The investment bank cancelling the transaction avoiding a potential $100 million loss.

  • Anti-Money Laundering and Financial Crime Expert Witness

    Financial Crime

    Expert Testimony

    Anti-Money Laundering


    In connection with a law suit brought against a financial institution, White Collar Forensic worked together with a team of AML compliance, investigative, legal and technology subject matter experts to assist a testifying expert in connection with a report about anti-money laundering failures that allowed a pattern of criminal conduct to continue unchecked. The work revealed evidence of substantive non-compliance, management override of controls and other acts that allowed a pattern of criminal conduct to go on for several years.  The team's work contributed to counsel's ability to enter into a favorable settlement before trial.