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DEEP BACKGROUND

THE BLOG ABOUT BACKGROUND CHECKING

TOPIC: Due diligence

    May 8th, 2018

    Even a “rigorous pre-employment check” can miss it.

    By Jack Mintz

    TOPICS: Due diligence

    A business that forces out an employee for questionable behavior often tries to keep the news from outsiders, including prospective future employers looking for references, for fear of generating a lawsuit from the ex-employee.  The first employer’s silence can make it hard for even the most careful next employer seeking to protect itself and its […]

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    April 17th, 2018

    The former boxer may regret saying, “You can call me Floyd Crypto Mayweather from now on.”

    By Jack Mintz

    TOPICS: Due diligence

      When federal authorities recently charged two 20-something cryptocurrency promoters with lying to investors, it was “a harsh awakening for celebrities who have entered the wild west of initial coin offerings amid the Bitcoin craze,” Fortune magazine said. Boxer Floyd Mayweather and music producer DJ Khaled had been social-media promoters of the cryptocurrency company Centra Tech Inc., […]

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    April 4th, 2018

    Why, Exactly, Are You Background Checking That Foreign Official?

    By Jack Mintz

    TOPICS: Due diligence

      A company setting out to do business overseas commonly undertakes background investigations of foreigners it plans to deal with in landing the work.  The goal is to make sure they are not notorious bribe artists who are too close to foreign officials and could get the company in trouble for corruption.   But Justice […]

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    March 5th, 2018

    A “giant blind spot” in banks’ due-diligence practices

    By Jack Mintz

    TOPICS: Due diligence

    Most financial professionals must comply with tough anti-money laundering and know-your-customer laws, but small groups of shady businesses have figured out a way to trick banks into foregoing the required due-diligence checks.  That’s the conclusion of a recent article in the Times of Israel, that called the scheme “a giant blind spot, a flaw in the [financial-technology] […]

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    January 30th, 2018

    Compliance executives accountable for not terminating accused third parties

    By John Mintz

    TOPICS: Due diligence

    Federal prosecutors have held a former compliance chief for MoneyGram International Inc. personally responsible for failing to adequately enforce anti-money laundering standards among the company’s money-transfer agents and outlets. The government’s recent court settlement with Thomas E. Haider prompted some corporate compliance practitioners to complain that authorities are unfairly scapegoating their profession for corporate impropriety […]

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    Chinese know less

    October 3rd, 2017

    Mintz Group partner: Chinese know less than you assume

    By John Mintz

    TOPICS: Due diligence

    When The New Yorker magazine set out to research the danger of nuclear war with North Korea, writer Evan Osnos contacted Randal Phillips, a Mintz Group partner who heads the company’s Beijing office. In the article, Osnos described an episode from 2008, when North Korea’s then-dictator, Kim Jong Il, suffered a stroke. “Randal Phillips, a […]

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    $500 million missing

    September 20th, 2017

    Due diligence might have been a little weak; $500 million is missing

    By John Mintz

    TOPICS: Due diligence

    A group of global banks is being criticized for allegedly failing to do adequate due diligence into Mozambican maritime projects for which the banks helped arrange $2 billion in loans, and from which $500 million is now allegedly missing. Those are conclusions of an independent audit prepared for the nation’s chief prosecutor, a parliamentary report, […]

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    due-diligence-procedures

    August 30th, 2017

    How high in an organization should deals be vetted?

    By John Mintz

    TOPICS: Due diligence

    Even Goldman Sachs, which is known for buttoned-up due diligence procedures, can fail to put senior-enough eyes on a risky deal. That possibility arose in the firm’s dealings with the especially corrupt Nicolas Maduro regime in Venezuela, which recently floated bonds to finance its state oil company. Goldman purchased $2.8 billion worth, paying 31 cents […]

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    nigeria red flags

    August 25th, 2017

    Failing to heed red flags can lead to trouble – $599 million worth

    By John Mintz

    TOPICS: Due diligence

    The U.K.’s Serious Fraud Office gave Rolls-Royce some faint praise before blasting it in a recent court statement; the SFO said the global firm “did undertake some compliance” into a Nigerian company hired to help it land business there, but that the due-diligence effort “was ineffective, and failed to detect the corrupt nature of the […]

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    August 14th, 2017

    Could FINRA do more to inform the public about business risk?

    By John Mintz

    TOPICS: Due diligence

    Embed from Getty Images Background screening is all about assessing the risk of doing business with someone. A recent article by Reuters says that a leading financial regulator is withholding from public view potential red-flag data about brokerage firms that could be helpful to investors and others who are gauging risk. The news service reported that […]

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