Background Checks

Background Checks

The IDDO – The International Due Diligence Organization was launched last month and almost immediately had several people requesting a spot to speak at our launch event in San Mateo this February. This has been a much-anticipated event. One fellow a lawyer, by the name of David claimed the following… A Captain in the US Army with a silver star, BS and JD from New York University, and MBA from Harvard and a MA from the American Film Institute. David had none of the degrees he claimed have, no Army service – under any of the names he was using but he does possess a string of felony convictions. David will not be speaking at the event.

The very same day a client was interested in doing a Joint Venture with a woman who claimed to be a Yoga Instructor, certified Sports Nutritionist, and a Certified Personal Trainer. She also claimed to have some credentials in Pilates and Zumba. After speaking with the, the Yoga Alliance, International Sports Sciences Association, American Counsel on Exercise – finding she had no credentials in Yoga, Training or Nutrition – we did not bother checking with anyone else.

As one fellow put it, “They were fully accredited star LinkedIn actors.” A great descriptor.

How many times to we have to say – Background Checks Matter. 85% of the problems with Banks and the fines they have had to pay could have been dealt with by appropriate levels of KYC and client intake due diligence. As along as the investment in due diligence is thought of as an expense and not a valued risk management tool, lawyers are going to be busy litigating, business’ are going to continue to have high shrinkage and turn over, and banks are going to keep paying fines.

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