Hidden Accounting, Operational Red Flags Exposed

A potential investor considering partnering with an investment firm engaged us to conduct investigative due diligence on the firm and its leadership. 

Conducting interviews with knowledgeable sources, we learned that a recent audit had detailed a variety of accounting and operational red flags — but that the audit was not a public document.

However, we also learned that the audit’s findings had been discussed in detail in a lengthy court hearing and that following this hearing, the investment firm’s counsel succeeded in excluding the audit report from the court record, effectively keeping it hidden and publicly inaccessible.

However, we ordered transcripts of the hearing and thus were able to read and reconstruct the audit’s findings, since they were discussed in detail in court.

As a result of our work and these findings, our client chose not to invest.