Deep Background

Diligence Failure Sends Chinese Mega-Fund into Tailspin


September 11, 2019
Topics: News

Bloomberg News quoted a Senior Managing Investigator at the Mintz Group’s Beijing office on the need for in-depth research in background screening before putting money into an investment.  Jesse Si, who is also a Certified Fraud Examiner, was commenting for a Bloomberg article about a large Chinese asset-management firm that placed some of its investors’ money into a conglomerate whose chairman was recently detained by Chinese police.

Mounting Questions

“One lesson for asset managers is that they should talk to all of the relevant parties in an investment before committing money,” said Jesse Si, a Beijing-based senior manager at Mintz Group, which specializes in due diligence investigations, the Bloomberg article said.

Bloomberg also said that “the asset manager faces mounting questions about whether it overlooked risks when steering clients into high-yield investment products that some analysts have likened to ticking time bombs.”