Case Studies

Due Diligence Investigations

  • Paul Chamberlain International has been conducting due diligence investigations for over twenty years.  These investigations are conducted for IPOs, mergers/acquisitions, joint ventures and venture capital investments.  Our staff includes experts in law, risk analysis/management, commercial lending, computer systems and other related fields.
  • PCI manages due diligence investigations in order to uncover potential problems that will not be revealed through traditional means.  Our Due Diligence investigations have revealed ongoing government investigations and legal problems as well as blatant omissions and misrepresentations of pertinent information.
  • As former Special Agents of the FBI, PCI has the ability to gather information from Federal and local law enforcement sources that is unavailable to most firms.  In addition, PCI has numerous industry sources through which we can obtain information not available to the general public.

Case Example:

Focus: Joint Venture
Case Type: Due Diligence Investigation
Client: International Financial Services Firm
Subject: East Coast based IT and Electrical Services Company
Result: PCI determined that two of the subject company’s principals had ties to organized crime figures in the State of New York.  In addition, PCI uncovered that there had been allegations of bankruptcy fraud involving the CFO 10 years prior.  Based on this information, the client decided not to continue with this venture.

International Due Diligence Investigations

  • Paul Chamberlain International has conducted due diligence Investigations since 1981.  In addition to domestic cases, clients have frequently asked Paul Chamberlain International to conduct investigations overseas.
  • PCI conducts investigations worldwide with special emphases in Asia and Europe.  Among other locations, we have performed investigations in London, Amsterdam, Paris, Tokyo and Hong Kong.
  • Most of our overseas representatives are former Special Agents or Legal Attaches of the FBI, previously assigned to United States Embassies.  In this capacity, they developed productive liaisons with local and foreign law enforcement officials.
  • These representatives possess fluency in foreign languages as well as knowledge of national and ethnic customs.  Their international experience has proven invaluable in the resolution of sensitive situations for our clients.

Case Example:

Focus: Initial Public Offering
Case Type: International Due Diligence Investigation
Client: Global Investment Bank
Subject: A financial services/asset management company based in New York with affiliations in Japan.
Result: PCI conducted investigation into Japanese principals involved with the subject company.  The investigation, which also consisted of checks with various regulatory and law enforcement sources, failed to reveal any derogatory information.  Sources included individuals within the Japanese National Police Agency.  The subject company has now been publicly traded for three years.

Major Borrower Background Investigations

  • Paul Chamberlain International has conducted Major Borrower Backgrounds for financial institutions since 1983.  Several financial institutions participating in this program have internal requirements calling for Paul Chamberlain International’s involvement on all loans in excess of $5 million.
  • 13% of potential borrowers were declined based on investigations conducted by Paul Chamberlain International.  Criminal charges have been filed against potential and/or current customers on 12 different occasions due to this program.  In those cases, Paul Chamberlain International acted as a liaison between the financial institution and the appropriate law enforcement agency.
  • PCI conducts these background investigations locally, nationally and internationally.  These searches are all directed from our headquarters and results of our inquiries are analyzed and assessed by PCI investigators experienced in fraud investigations.

Case Example:

Focus: Major Borrower Background Investigation
Case Type: Investigations for Financial Institutions
Client: Community Bank – Chicago, Illinois
Subject: New Client – Individual
Result: Investigation determined that the bank’s client held a large stake in a limited partnership, which owned a large real estate project that was in the process of being foreclosed on.  Financial statements provided by the subject did not list the investment, and when questioned, the client denied any involvement in the partnership.  PCI obtained the necessary information and documents to confirm the subject’s interest in the LP.  The bank ultimately denied the loan.

Financial Fraud Investigations

  • Paul Chamberlain International maintains a Financial Fraud Task force, which specializes in investigating while collar crimes, primarily against financial institutions.  This task force consists of experienced professionals, including former Special Agents of the FBI who specialize in the investigation of white collar crime, certified public accounts skilled in forensic accounting and former federal regulators.
  • PCI’s Financial Fraud Task Force is designed to assess the underlying causes for institutional failure, search for evidence of criminal activity, breach of regulations, bad business practices, breach of fiduciary duty, and recover losses.
  • This elite task force has had the unique distinction of serving as a primary investigative resource for the Federal Home Loan Bank Board and has been retained on numerous occasions by the FDIC and the RTC to investigate the largest and most publicized S&L failures in United States history.
  • PCI also has the expertise to carry out thorough investigations in cases of suspected employee or director dishonesty.  Our investigations are designed to obtain the evidence needed to successfully recover losses through a fidelity bond claim, and use that evidence to prosecute the offenders.

Case Example:

Focus: Savings and Loan Failure
Case Type: Financial Fraud Investigation
Client: Financial Corporation of America
Subject: American Savings and Loan
Result: PCI conducted an extensive investigation into, what was at the time, the largest loss (1+ billion dollars) by a financial institution in U.S. history.  PCI’s work resulted in a 50 million dollar recovery for the FDIC pursuant to our fidelity bond investigation.  In addition, several subjects were convicted on fraud and other related charges.

Financial Services Programs

  • Money Laundering/Customer Background Investigations – Now more than ever it is important that a financial institution know its customers and their backgrounds.  PCI is in a position to help prevent and detect money laundering and other forms of fraud.
  • Employee Background Investigations – At Paul Chamberlain International, we have been providing clients around the world with employee background investigations tailored to meet each client’s interests and needs.  It is essential that an employer be informed about individuals or entities that might be engaged in unethical and/or illicit activities whether in business enterprises or personal affairs.
  • Asset Recovery Investigations – PCI has an exceptional record of success in locating the physical and capital assets of individuals and business entities for our clients.  Whether in anticipation of litigation or collecting on a judgment, PCI can evaluate even the most complex financial transactions.  In addition, if a pattern of fraudulent transfer of assets is uncovered, PCI will conduct specialized searches and gather source information focusing on locating hidden assets.
  • Fidelity Losses – Although fidelity losses are often difficult to prove, PCI has successfully conducted investigations that supported some of the largest fidelity bond claims in United States history. In such cases, PCI investigators utilized a variety of resources to discover the evidence needed to prepare for the formal proceedings in employee dishonesty cases.

Case Example:

Focus: Asset Recovery Investigations
Case Type: Financial Services Program
Client: Russian Federation Government
Subject: Russian Diamond Merchants
Result: In 1995, PCI directed an investigation into the location and recovery of hundreds of millions of dollars in assets for the Russian Federation Government.  Between 1995 and 2000, PCI was retained by the Russian Federation to locate and recover stolen government assets that had been diverted from their operation in the United States.  This investigation eventually traced the Russian Federation assets and subsequently recovered and returned them to the Federation’s control.