Thursday, November 05, 2009

Kroll Inc. recently settled a lawsuit involving the National Electrical Contractor’s Association’s allegations that Kroll mislead the company into believing that accused Ponzi schemer Allen Stanford’s business dealings were above board, causing them to invest and lose millions.

The current climate of investing, with Ponzi schemes and frauds abounding, has caused many investors to obtain due diligence services relative to potential investment firms and opportunities prior to investing.  An employee of Kroll was apparently found to be an associate of the accused fraudster, and the employee abruptly left the company shortly following the lawsuit.

Investors should be forewarned that before obtaining the services of a corporate investigations for any purpose, including due diligence, that it is essential to determine the key players, and obtain information on references, possible conflicts of interest, and previous successes.  For more information on a Ponzi scheme due diligence investigative effort that was effective, you can check out press releases here: http://www.investigation.com/articles/library/2008articles/articles20.htm/and here: http://www.investigation.com/articles/library/2008articles/articles18.htm .

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