After speaking with business owners of all types of companies engaged in virtually every industry, it has become clear that everyone at some point has worked with another company that turned out to be a fraud.
Everyone has their own story; They ordered a product that never arrived, or was not as advertised. Some hired a firm to provide a service only to learn that they are not licensed, did not do the work or did it wrong or of poor quality.
The exact shape of the fraud is always changing, but sham organizations whose purpose is to cheat and run are present in every industry and in every profession.
Background research by an experienced private investigator will expose these frauds before you or your company invest resources. A careful search of the corporate officers or the managing members of a limited liability company will expose a sham company.
Checking the company with the Secretary of State and looking to see if there are any civil suits against the company is not sufficient. A defect investigation is necessary to expose the professional fake.
A private investigator's business background research identifies the individuals who run the company, then checks their personal histories.
Individual corporate officers are scrutinized to see if there are issues in their personal histories that merit concern. Do they have multiple business filings, civil and / or criminal suits, tax liens and judgments?
Reviewing how real property is vested discloses whether their assets are under their own name, or in trust to someone else.
Once the individual members of the company pass this investigation, a defect review of the company itself is performed. Even a company that is not a sham organization may still operate by routinely breaching its contracts then offering a small sum in settlement. A practice referred to as getting a "litigation discount."
These companies are exposed by a thorough review of the right sources. In addition to checking the civil index, employee wage claims and adjudicated workers' Compensation appeal cases are reviewed.
From these records, names surface of people who have first-hand knowledge of the business and its officers. Some of these witnesses can be located and interviewed to discover the company's business practices and whether the company operates legitimately, or not.
A business background investigation is the proverbial ounce of prevention that will save your company tons of frustration and lost income by uncovering the corporate frauds before they can cheat you.