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Actual 1^stWEST Case File Experiences

A previous investigation found a pending criminal action against one of the principals of a subject company, and based upon the information found, the client chose to "walk away" from the transaction. Subsequently, the individual was convicted and sentenced to a prison term for accounting fraud.
An updated investigation, as a result of an acquisition of our client, revealed a subsequent criminal action for fraud brought by the US government against a principal of the subject company. Several pending civil actions and a prior bankruptcy of a company affiliated with the principal were also discovered.
Two separate criminal actions were found filed against the company prospect, one charging unlawful disposal of industrial waste and the other charging conspiracy to restrain trade through price fixing. The company pled guilty to one and no contest to the other.
Three principals of a prospect company were investigated with the following results: one of the individuals had two domestic violence cases filed against him, one had a previous bankruptcy and the other recently had a mortgage foreclosure and numerous other credit defaults. Due to these findings, our client reported that they "walked away from the deal."
The principal of a prospect company plead guilty to a charge of child molestation. The criminal action and plea of ten years ago was found in a prior state of residence
Three principals on a transaction had previously filed bankruptcy, with one having filed twice. One of the principals plead guilty to fraud ten years prior, was sentenced and fined. Another one of the principals has been charged with conspiracy to commit offenses against the United States, which was pending at the time of our investigation.
A principal of a prospect company was found to be a defendant in numerous lawsuits, all claiming note default or breach of contract. The plaintiffs were primarily lenders, investors or other business associates. When attorneys who litigated two of these cases - one of whom is a former federal prosecutor - were contacted for additional information, they described the principal as a "con man" and a "shyster" who gets into deals with others, only to "take them to the cleaners."
The daughter and future son-in-law of the owner of a foreign prospect company were found killed "execution style" within days prior to commencement of our investigation with suspicion by local authorities of ties to the father's investment adversaries.
A principal of a prospect company who served time in a federal penitentiary for tax evasion owed over $2 million in income tax at the time of his incarceration. Taken into consideration at his sentencing were his prior criminal convictions and his history of criminal activity, dating back to his early teen years.
A construction company that was convicted of bid-rigging charges was implicated in the media as having close ties to organized crime.
A medical doctor, who is the defendant in numerous malpractice suits charging performance of unnecessary surgeries, had an extensive disciplinary file with the state's Board of Health which is seeking to permanently revoke his medical license
A principal of a subject company recently pleaded guilty to conspiracy, obstruction and perjury related to the investigation of a "Ponzi" scheme deemed "one to the largest frauds of the 20th century," a situation in which investors and banks invested more than $2.4 billion.
A subject company was sued and its CFO fined and sanctioned by the SEC for filing false and materially misleading financial information in its 10-Q reports.
The principal of a subject company is being sued by the FDIC to remove him as director of a financial institution, charging unsound banking practices, breach of fiduciary duty, violation of banking laws, self-dealing and personal dishonesty.
The CEO of the prospect company has been arrested for assaulting the current lender's auditor during a special exam.
The CEO of the prospect company has been convicted and has served time in prison for bank fraud relating to falsification of accounts receivable and inventory records to his previous lender.
The CEO of the prospect company is under investigation for fraud and has been sanctioned by the regulators of a foreign trading exchange for securities fraud.

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