Whether you are entering a merger, considering an investment, or assessing a competitor’s advantage, due diligence is a necessary factor to ensure a successful outcome. Business leaders know the importance of growth but every opportunity presented holds the potential for success or failure.
Business intelligence consists of collecting and organizing large amounts of data that enable businesses to identify opportunities and develop strategies that promote long-term success. Hans Peter Luhn, a researcher for IBM, said in a 1958 IBM Journal article, “Business intelligence is the ability to apprehend the interrelationships of presented facts in such a way as to guide action toward a desired goal.”
Successful business leaders know the importance of information gathering and review before making any business decision. They draw information and knowledge from various professional disciplines including business consulting, law firms, journalists, and of course investigators.
For instance, when considering a merger with another company it is crucial to know as much about the company’s history, business management, ethics, financial solvency, possible undisclosed liabilities, leadership of the company, and their affiliations. All business transactions have potential risks and it important to assess these risks prior to entering any business transaction. The public information gathered can be quite revealing and prevent a decision that could devastate years of hard work, reputation, and even avoid litigation in the aftermath.
Another circumstance that could arise is that your company may want to know the demographics of your competitor’s clients. The information gathered would contain the number of products offered by the company, how many were products were purchased, how many were sold to men or women, the age brackets of those who purchased the products, the average income level, zip code, and level of education. Utilizing a combination of commercial due diligence and intensive analytical due diligence can forecast sales growth; identify a competitor’s operational metrics, procurement, customer management, and even fraud.
While business intelligence can identify external opportunities and risks, internal business intelligence can be equally important. For instance, in the Human Resources Department of a company, the data collected on employee’s absences can be a predictive trend and therefore a strategy developed to combat income loss and retain employees. The same company may want to gauge how their latest marketing campaign is increasing sales in order to produce a trend analysis report and present the information in east to understand graphs and charts in PowerPoint at the next Board Meeting. The advantage of data analysis is endless when assessing performance measures of a business.
Professional investigative teams have private investigators that can verify information, collect information about financial transactions, assets, investments, liabilities, and identify existing contracts, business practices, and even political associations. The information is then provided to the client providing a solid base for decision-making.
Business intelligence involves research, measurement, querying, analytics, data mining, performance management, reporting, identifying benchmarks, information sharing, and regulatory compliance. To implement effective business intelligence strategy, it is important to have skilled investigators to help your company obtain the needed information while conducting a legal, ethical, and discreet investigation.
According to Thomas Lauth, owner and lead private investigator at Lauth Investigations International, business intelligence has become a necessary component of business management worldwide. “From a negative media campaign to competing for a contract, knowing who your opposition is and their political and media affiliations, marketing and internet campaigns, and even motives will give you the competitive edge” says Lauth. “The old saying, it is better to be safe than sorry!” rings true.
Suspect work place fraud? Call Lauth Investigations today.
So you’ve realized that you are the victim of workplace fraud. What now? For many business owners, it can be frustrating trying to figure out what to do after uncovering fraud in the workplace. Here are five options of who to contact when you suspect that you’ve been duped.
1. Many begin by calling an attorney
You certainly might need one at some point during this stressful process, but not all attorneys are capable of assisting in the same way. Different attorneys have different specialties, and their advice on the proper way to proceed will likely vary widely. Calling your attorney could be helpful, and again, may be necessary. Still, it might not be the best first-option due to the high professional fees that attorneys tend to charge.
2. Luckily there is crime insurance, right?
It’s certainly true—crime insurance can help recover funds lost in workplace fraud cases. However, just like most other types of insurance policies, there are countless factors that play into the decision to approve or deny a particular claim. Far too often, a small error or failure by the policy-holder results in the claim being denied. Not to mention, when approved, crime insurance policies usually only cover a tiny fraction of the overall loss. Crime insurance is great, but it is no substitute for a proper investigation.
3. Contacting the police is also always an option.
The police can certainly investigate; however criminal justice is a slow process, and often times workplace fraud cases can be tough to prosecute—especially if the district attorney feels there is an apparent civil agreement that has already been made. But what if the employee agrees to pay the money back, and defaults on their agreement? For several reasons, the police are only limitedly helpful in workplace fraud cases.
4. Often times a small business owner will contact their CPA.
Again CPAs and other trusted advisors could be needed at some point, but the advice you receive may vary a great deal. Sometimes the actions taken can actually complicate the issue—costing even more in professional fees. Take the wrong step, and you may hurt your chances of criminally prosecuting the employee and having a successful recovery of losses. Although involving a CPA could be necessary, it also may not be the best first step.
5. The correct first step very well may be to contact a private investigator.
Many private investigators have experience dealing with workplace fraud cases; they also have experience working with attorneys, crime insurance companies, police, CPAs, and other professional advisors. Working with a private investigator on a workplace fraud case can yield important results while keeping costs low.
A private investigator can examine the case and determine which, if any, of these avenues would be the most fruitful. Getting a private investigator involved in the case, before hiring other professionals, can help simplify the issue while keeping costs for professional services, like attorney fees and CPA costs, to a minimum.
White collar crime happens every day in the US, and it costs corporations billions of dollars annually. As with most things, preventing these crimes from occurring is always preferable, but given the number of cases making the news on a weekly basis, that’s obviously not always possible. For those situations in which you either suspect a crime is being committed in the workplace or you’re already in the throes of a legal battle, an experienced private investigator can significantly improve the chances of a more favorable outcome. Here’s how.
Internal Investigations – A private investigator can help identify and weed out those working for the corporation who may be up to no good. In some cases, the investigator can openly conduct the investigation. In other instances, he or she can go undercover, posing as another employee to help gather intel and compose evidence.
Vetting Witnesses – Whether it’s identifying key witnesses to help support your case or poking holes in witnesses for the other party, a private investigator knows who to look for, what questions to ask and what type of research needs to be done to achieve the best possible outcome.
Conducting Interviews –A private investigator is quite often called upon by a corporate attorney for a number of reasons, one of which is conducting in-depth interviews with all the parties involved in the case. When handled properly, this can help you be prepared and avoid any unexpected surprises that may pop up during court proceedings.
Reviewing and Gathering Documents – A private investigator who is experienced in dealing with white collar criminal cases will know precisely what type of documentation is needed in order to strengthen and/or prove or disprove supposed facts about the case. The more detailed documentation you have ahead of time, the better your chances in mediation or court.
Differing Perspective and Insight – For most executives, dealing with a criminal investigation isn’t something they have to experience very often. Because of this, it can be valuable to partner with a private investigator who has worked on several such cases in his or her career. The first-hand experience and personal knowledge can help to set expectations and provide a different point of view.
Do you suspect that a crime may be occurring within your organization, such as embezzlement or insider trading? Are you in the process of building a case for court? Give us a call and let’s discuss how we may be able to help.
No organization ever wants to have to deal with the messy details of commercial disputes, but despite our best efforts, these things happen. How you respond to such a situation can make a significant difference in the outcome. Should you find yourself dealing with a dispute, whether it’s over a simple misunderstanding or something more complicated, here are a few best practices for making the process go more smoothly.
A good offense is always the best defense. Whenever possible, the proper procedures should be implemented and adhered to in order to avoid commercial disputes altogether. For instance, always ensuring that agreements are in writing and contain clear and specific details can dramatically reduce the chances of a potential conflict down the road.
Have a plan in place. For instances in which commercial disputes cannot be avoided, it’s equally important to have a well-thought-out plan in place. This should include the appropriate steps to be taken the moment notice of a dispute is received. The sooner a situation like this can be resolved, the less significant the impact will be on your business.
Appoint someone to oversee the matter. Some organizations actually have an entire team that will come together to deal with incoming commercial disputes as they arise. If your firm is small or disputes are relatively rare, you may just want to have one point of contact who will be the go-to person for ensuring that the process is carried out as planned and in the timeliest manner possible.
Act fast. It may be tempting to ignore or put off commercial disputes in an attempt to avoid the hassle, but doing so could cause additional, unnecessary damages to your business. It’s always in your best interest to address and resolve these types of conflicts as quickly as possible. Otherwise, you’ll probably end up spending much more money and dealing with additional problems down the road.
Document accordingly. Be aware that you may be required by a judge to present any and all documentation relating to the situation at hand should the commercial dispute end up in court. This includes email correspondence, confidential documents and even personal notes. Keep this in mind so you can avoid documenting anything that may be considered negative, derogatory, embarrassing or otherwise detrimental to your business.
Hire a professional investigator. In addition to the documentation you may be required to present, the other party in the dispute will also have to deliver whatever is requested by the judge or legal representative. It can sometimes be helpful to retain the services of a professional private investigator who can dig up relevant information to help support your case against the other party. The investigator can also help you uncover precisely what happened internally so you can be adequately prepared to move forward.
Always use the appropriate verbiage. Attempting to work through commercial disputes outside of court is typically encouraged, but be careful about what you say and how you say it. For instance, most (but not all) communications between both parties should be documented with the words ‘without prejudice.’ The privilege this invokes allows you to explore the possibility of a compromise without the risk of prejudicing your case should you be unable to come to an agreement. You should consult with an attorney to determine precisely what terminology should be used and under what circumstances.
Do you need help sifting through the details of a commercial dispute? An experienced corporate investigator may be just the solution. Give us a call today and let’s discuss how we can help expedite the process and improve the chances of a positive outcome.
Employee drug abuse in the workplace can lead to a wide variety of problems, many of which can affect your company’s bottom line. Whether the drug happens to be alcohol, prescription medication or illegal substances, and regardless of whether the use is occurring during working hours or on the employee’s personal time, the results can include:
Decreased performance
Increase in tardiness and absenteeism
Lower productivity
Higher employee turnover
Increase in expenses associated with medical care and workers’ comp
Increased risk of workplace violence
Not only do these things affect the employee in question and the company as a whole, but they can also have a negative impact on other employees, leading to a host of other problems. To avoid this, management and those in HR must be proactive and vigilant so potential issues can be addressed swiftly and effectively. If you suspect that one or more of your employees may be abusing drugs, here are 7 steps to get the situation under control.
Develop a Clear-Cut Policy – In order to legally take action against a worker who is abusing drugs or alcohol, you must first have a policy in place that addresses such situations. For optimum results, your employee drug abuse policy should include the ability to test in the event of reasonable suspicion. The policy should be in writing and all employees should sign off acknowledging their understanding and agreement. If you don’t have such a policy in place, consult with your legal counsel to ensure proper implementation.
Watch for Warning Signs – An employee who is abusing drugs or alcohol may not always be blatantly intoxicated. Therefore, it’s important to know what warning signs and red flags may indicate possible employee drug abuse so they can be identified and tracked. Some common things to watch for include sudden change in behavior, excessive tardiness or sick days, withdrawal from others (i.e. the sudden desire to work alone, away from co-workers and/or supervision).
Train Those in Charge – HR representatives may not be able to identify the signs of potential drug abuse right away because they aren’t in direct contact with workers in every department. That’s why front-line managers should be properly trained and advised of their role in spotting red flags as well as the appropriate steps for documenting and reporting such suspicions.
Keep a Detailed Record – Employment laws protect workers from being unjustly disciplined or terminated, so be sure to do your due diligence. Any and all cases of suspected employee drug abuse should be clearly documented. This will help you establish your case and protect you from any potential backlash.
Meet with a Witness – Once a case of suspected employee drug abuse has been properly observed and documented, the next step is meeting with the worker in question to discuss the suspicions and a proposed plan of action. A witness should always be present to keep detailed notes and provide a third-party account of what occurs. Go over your company policy and discuss the appropriate next steps.
Test (When Allowed) – It’s important to note that drug testing is a legal issue and therefore should always involve the advice and/or guidance of an appropriate legal representative. Provided that you have the authority to legally do so, follow through with drug testing, either at designated intervals or when a suspicion arises.
Take Action – Depending on the regulations in your area, as well as what’s set forth in your company policy, the appropriate action should be taken when suspected employee drug abuse occurs. This may be a warning, a suspension or termination of employment. Remember to always stay within your legal rights based on what the employment laws in your state allow. When in question, always consult with a legal professional.
Of course, some companies find it too tedious to follow up on suspected employee drug abuse. If you find yourself in this boat, enlisting the help of an experienced private investigator can help alleviate some of the burden and help you focus on what’s most important: protecting your other employees and your reputation. Give us a call and let’s discuss how we can help!
