HOUSTON, July 21, 2009 — Background investigations for Hedge Funds, Private Equity Groups, and Venture Funds are in the spotlight with the recent frauds with Maddoff in New York and Stanford Financial based in Houston. The focus for Maddoff and Stanford has shifted for defrauded investors to litigation and asset recovery. For those who still are invested in third-party managed funds or are considering investing in such an investment vehicle, the background of the individuals responsible for the management of these funds has become critical.
It has also become clear that past levels of background investigation and due diligence has been limited at best. As Jack McCann, Founder of McCann Global, noted, "Frauds like Maddoff and Stanford are affinity frauds, meaning they count on people being impressed with the existing fund members and the status of being a member of a perceived exclusive club." He continues, "Those who are conducting the fraud count on limited scrutiny and sell the exclusivity of the investment vehicle."
While some backgrounds of potential frauds will not pull up any relevant information on a future criminal, it oftentimes does generate signs of a checkered past. Many Internet-based background services look for criminal convictions and bankruptcy; however, they fail to look at civil litigation or if these parties have a history of failed businesses.
A more extensive background on the principals of a firm and the firm itself is justified if the investor is going to commit significant amount of capital. The depth and cost of a background depends on who is being checked, the total number of individuals involved, and if the diligence is concentrated on one location or many. In addition, backgrounds outside of the United States are more costly due to the limited nature of electronic databases in most second and third world countries. The costs can range from hundreds to thousands of dollars and can take from a few days to weeks depending on multiple factors.
McCann Global combines extensive law enforcement background with years of private sector experience. Their investigators understand the business of investment professionals and have been involved with third-party money managers for decades. The unique understanding of Hedge Funds, PE, and VC funds differentiates McCann Global and allows it to understand the risk and reward calculations of our clients.
McCann Global's corporate investigators work as a team to perform the background checks required by the company's clients. McCann Global's investigators also provide recovery services for those clients who have already been the victim of fraud. While many cases require extensive litigation, some fraud recovery can be resolved outside of litigation.
McCann Global's mission is to "keep our clients informed and secured." The company believes that by providing its clients with the background information of the parties they are entrusting with their funds, they decrease the chances that they will become victims.
Find out what makes McCann Global unique. Call to discuss your due diligence or background of a potential investment or investor. McCann Global stands ready to make you "informed and secure."
About McCann Global:
Our clients keep moving forward, growing, reaching into new areas.
We stand shoulder to shoulder with our clients as their trusted right hand. We combine decades of law enforcement experience and over 25 years of private sector experience. Our unique experience gives us a powerful insight on how to best serve our private sector clients.
McCann Global's reach is extensive in the markets that we serve. For over four decades, our principals have held senior public and private sector positions in the security industry. McCann Global's reach is also well beyond the regional areas of New York and Houston. McCann Global's principals have worked directly with the national and international public and private sector, current and former law enforcement personnel. McCann Global has strong connections and relationships with former and current senior and local personnel in key cities around the world. McCann Global groups its services into two key deliverables: Informed and Secured. We call that service the McCann Global IS. Hiring the right corporate investigation firm is a serious decision. After all, it is the experience that matters.
Informed Services Include: Backgrounds, Investigations, Computer Forensics, and Due Diligence
Secured Services Include: Security and Risk Assessment, Technical Electronic Counter Measures, Video and GPS Monitoring, and Physical Protection
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