According to the 2012 Report to the Nations published by the Association of Certified Fraud Examiners, the typical business organization loses 5% of its revenue to fraud each year. The median loss caused by occupational fraud reported in the ACFE study was $140,000, with at least a million dollar loss reported by one-fifth of the businesses. The perpetrators of these frauds are employees operating at all levels within an organization, not only production workers but management and executive employees. The best way to prevent employee theft begins with an effective pre-employment screening program and background investigation.
The Trace Investigations team of experienced legal investigators, research specialists and intelligence analysts has been providing background investigations and pre-and post-employment screening services to small businesses and larger corporations for over two decades.
Business relationships entered into too quickly can lead to fraud and other losses. Before entering into any new business arrangement, such as a merger or acquisition, a due diligence investigation is required.
“The goal of any due diligence investigation is to avoid a bad business or investment decision.” This quote is from Trace Investigations founder Don C. Johnson, Certified Legal Investigator™, in the reference text, Corporate Investigations, published by Lawyers & Judges Publishing Company, Inc., 2002 edition. Johnson authored Chapter 11, “The Due Diligence Investigation,” which still serves as a manual for conducting an investigative due diligence. At the time, studies illustrated that the U.S. economy lost billions of dollars annually to various business frauds and economic crimes. Those losses have only continued to climb and, as Johnson noted then, “Economic crime is in itself a growth industry …” Any business owner or corporation board of directors considering a business merger or acquisition is duty bound to conduct a due diligence investigation on that proposed transaction. There are three key actors in a due diligence investigation: an attorney, an accountant and an investigator, each playing a significant and collaborative role in the process.
The National Crime Prevention Council reported that in 2010 in the United States the value of seized counterfeit goods and unlicensed products exceeded $260 million in domestic value. There are two general categories of intellectual property: copyrighted materials, such as books, films and other artistic works; and industrial property, such as trademarks, service marks, patents and designs. International manufacturers of designer goods are obviously concerned about protecting their brands, considering the extent of counterfeit products that travel across international borders to various wholesale and retail outlets. Smaller businesses and manufacturers should be equally concerned about the marks and designs that distinguish their products or services.
To eliminate doubt that could jeopardize the outcome of a serious matter please call us at 812-334-8857 or 800-310-8857 for a FREE consultation.