Case Studies

Over the last two-plus decades we’ve been in existence, NCO Financial Investigative Services (FIS) has helped countless clients mitigate their risk through highly detailed, comprehensive research and analysis. But you don’t have to take our word for it. See below to read about the specific experiences and successes of businesses like yours.

Private Equity Firm Avoids Deal with Subject Involved in Nigerian Email Scam
Client Learns of Hedge Fund CEO’s Felony Drug Possession Charge
Employer Retracts Job Offer to Applicant with Criminal History; Future Employer Does Not
Lender Avoids Providing Funds to Client with Mafia Ties
Commercial Tenant Unsuccessfully Attempts to Escape Lease
Commercial Lender Discovers Potential Borrower’s Felony Criminal History

Private Equity Firm Avoids Deal with Subject Involved in Nigerian Email Scam

Scenario: A private equity firm engaged NCO FIS to conduct a background check on an individual they were considering for the controller position in one of its portfolio companies. The firm previously asked the subject face-to-face during the interview process if there was anything in his background that would prevent them from moving forward. The subject denied there was anything negative in his background, but the firm still proceeded with an investigation.

Findings: NCO FIS discovered that more than a decade prior, while working as the operating manager of a furniture store, the subject had been the victim of a Nigerian email scam. In an attempt to recover the “millions of dollars waiting for him through Nigerian government officials,” the subject had made unauthorized wire transfers from his company on numerous occasions, many of which were more than $100,000 each. The subject was eventually charged with eleven counts of felony wire fraud and was convicted on ten counts.

Result: NCO FIS let the client know as soon as we found out about the charges and convictions. Subsequently, the firm did not move forward with the subject, potentially avoiding substantial frustrations and monetary losses.

Client Learns of Hedge Fund CEO’s Felony Drug Possession Charge

Scenario: A client came to NCO FIS looking to run a background investigation on the CEO of a hedge fund, in which they were considering investing. The subject disclosed to the client that he had been falsely charged, and not convicted, on drug possession charges approximately one year prior. More specifically, the subject said he worked with a nonprofit organization that helped people with drug addictions and was caught when giving a ride to someone who needed assistance.

Findings: In conducting our search, NCO FIS found that the hedge fund CEO had, in fact, been charged with misdemeanor possession of drug paraphernalia and a hypodermic needle, as well as felony possession of a controlled substance. This record, however, indicated the felony charge was slightly different from the original, which was for possession of a methamphetamine. That charge was dropped after the successful completion of an attorney general drug program, per a plea agreement signed by the subject.

A few months following the initial filing of the charges, the case was closed and charges were dropped. In addition, approximately three months later, the subject filed a petition for the records to be expunged; however, at the time of our search the records still existed.

Regarding the nonprofit the subject mentioned to the client, NCO FIS did find that he was set up as the head of a group, which was named after him. We also discovered, however, that the organization was founded after the subject was charged.

Finally, NCO FIS found that the subject had falsely certified his investment advisor records with the SEC. Although he had not been convicted of his drug possession, he declared in a SEC disclosure that no one involved with his hedge fund had ever been charged with a felony.

Result: After submitting our final report, the client was shocked to learn of the subject’s recent dishonesty and criminal activity. They believed the CEO to be untrustworthy and of questionable character, influencing their decision not to invest with the hedge fund.

Employer Retracts Job Offer to Applicant with Criminal History; Future Employer Does Not

Scenario: A client of NCO FIS extended a job offer to an applicant without first conducting a background check. The client did advise the potential employee that a screening would still need to be completed before he started. At that time, the applicant communicated to the employer that there would be a lapse in his employment history due to his spouse being diagnosed with a terminal illness. He claimed he and his spouse had moved overseas to be closer to family while seeking treatment for the illness. In addition, the applicant mentioned that he had been a victim of identity theft.

Findings: During NCO FIS’ background check of the subject, we uncovered that his stay overseas was actually a short prison sentence. In addition, we learned his spouse was not ill because the subject was never married.

Further into our investigation, we found the subject’s claim of being an identity theft victim to also be false. In truth, he was using two social security numbers, which allowed him to obtain student grants illegally by applying to different universities. Additionally, the subject’s educational history listed on his resume did not match our records.

Result: Based on our extensive findings regarding the subject’s criminal history, intentional misrepresentation and match of his mug shot to his driver’s license, the client had no choice but to retract their offer for employment. Due in part to his time spent in prison as a “jailhouse lawyer,” however, the subject was fully aware of his legal rights through the Fair Credit Reporting Act (FCRA). In turn, because his offer was retracted due to his background screening, the subject knew he was entitled to obtain a copy of the background report. To ensure they stayed compliant with the FCRA, the client provided a copy of the report to the subject.

The client’s primary concern with providing the report to the subject was not their own well-being. Instead, they were worried the subject would use the report to his advantage by eluding similar situations with future employers.

Today the subject has moved across the country and now serves as an executive for a commercial real estate finance company. The subject’s bio listed on the company’s website is a fallacy, as our previous report had already confirmed much of the information to be invalid.

Lender Avoids Providing Funds to Client with Mafia Ties

Scenario: A venture lending client came to NCO FIS to conduct a background investigation on several subjects to whom they were considering making substantial loans.

Findings: During the beginning stages of this investigation, a NCO FIS analyst performed some preliminary research and almost immediately identified information regarding one of the subject’s ties to the Chicago mafia. Our analyst had an investigator conduct a bit more research to confirm his findings through a media search, which uncovered several derogatory articles regarding the subject’s association with the mafia. Just one day after the client submitted their request, we contacted them to let them know about our findings.

Result: The subject’s mafia ties changed the client’s mind about moving forward with a loan. By providing this information to them so quickly, we were able to help our client save significant time and money.

Commercial Tenant Unsuccessfully Attempts to Escape Lease

Scenario: A commercial real estate client asked NCO FIS for assistance in recovering debt from a tenant, which ran a business out of their rented space. The company moved out of the space virtually overnight, even though they owed the client back rent and lease completion rent with at least five years remaining on their lease. This left our client with debt from a defaulted lease and a potentially significant loss for their business.

Findings: Through a comprehensive asset and liability investigation, NCO FIS located the guarantor on the lease doing business just a few miles down the road. Although this business was operating under a different name from the company that just moved out of the space rented from our client, they were running the same type of business and their officers, management team and employees were the same as the other location.

Knowing they would be responsible for any debt incurred by the defaulted lease, the guarantor transferred assets out of their name to hide anything creditors might try to collect. Through our research, we were able to locate and uncover over one million dollars in movable assets.

Result: Based upon NCO FIS’ findings, our client was able to take the guarantor to court and prove that they knowingly defaulted on the lease, resulting in back rent and lease completion rent, and attempted to conceal assets. Our client won the case and recovered the full amount from the incurred debt.

Commercial Lender Discovers Potential Borrower’s Felony Criminal History

Scenario: A commercial lending client specializing in distressed real estate transactions requested NCO FIS to conduct a background check on a potential borrower. Although industry standards for such background investigations call for a ten-year scope of search, NCO FIS regularly goes to extra lengths to conduct more extensive searches. In this case, the additional research proved to make the difference.

Findings: NCO FIS found that the subject of our investigation was named as the debtor in a judgment filed in 1994, well over a decade prior. Upon further examination, the same judgment was discovered to be associated with a federal criminal case.

Due to the egregious nature of the record in question, NCO FIS conducted additional research at a federal courthouse outside the jurisdiction of the investigation. Specifically, the judgment was filed in Connecticut, while the criminal case took place in California. This supplementary investigation revealed that the subject had been convicted of bank fraud, wire fraud and money laundering, all of which are felony charges. These convictions resulted in a $500,000 fine and four years of incarceration in federal prison.

Result: These derogatory findings were reported immediately via telephone, averting a potential financial catastrophe for our client.