Auto body shop owner conned out of life savings. Man surrendered $60,000 in bogus car-shipping business deal, police say.

A recent article published by the Toronto Star highlights the need for doing due diligence prior to entering into new business deals or transactions!!!  View Article.

Is your due diligence investigation program up-to-date?

As a leading provider of due diligence investigations, we have been conducting due diligence investigations of all sorts for nearly two decades now.   Many of our first clients are still with us and together we have pushed boundaries as the evolution of what constitutes due diligence has taken place.

Due diligence is no longer a term that can be used to describe a cursory investigation process that focuses solely on surface or superficial information.

Today’s standard of due diligence now requires a much deeper investigation that is broadly focused on obtaining ALL relevant information and / or verifying ALL material facts that may assist the client in determining the potential risk of a transaction.

For example, it may not enough to simply know a company is legally registered. You may need to independently verify all of the information obtained from the corporate registration.   Does the company operate at the address provided? Who are the named principals and what is their relationship to the company? Does the company use other operating or trade names? Have there been recent changes that may affect the transaction in question or the quality of the investigation? If you really want to identify red flags or areas of concern … you have to dig deeper.

As with all business decisions, investigation budgets and time constraints may limited a client’s desire or ability to meet today’s standard of due diligence.   Many operate under the misapprehension that some due diligence is better than no due diligence and in some cases that may prove to be true. But from my experience, I find that this often leads to an mistaken sense of confidence leading clients to take more risk than they may otherwise would have.

If you have been conducting the same due diligence investigation for years, it may be time to re-evaluate and improve upon it. Ensure that the due diligence investigation you have is designed to meet your specific needs and objectives.

Forex Investors May Face $1 Billion Loss as Trade Site Vanishes

This type of fraud seems to happen more often these days.  Forex trading is fraught with risks in itself.  To protect yourself, always do your due diligence before investing with any individual and / or company especially online companies who can easily misrepresent themselves.

And don’t stop there.  Conducting a post-investment due diligence is a great way to identify when legitimate companies are heading for trouble.  Often, companies can cut and run after years in business.  There are often signs before hand so if you are paying attention, you may have a better chance to get out before its too late.

http://www.bloomberg.com/news/2014-11-13/forex-investors-may-face-1-billion-loss-as-trade-site-vanishes.html