Identifying Risk due to:
"Failure to Disclose Pertinent Information"
Our client submitted a search on a seafood company and the three principals being considered for a loan. The scope of the search for the US only. Our preliminary findings uncovered ties to Russia. While preliminary findings in the US did not show any issues; our review of media yielded information on one of the subjects involved who was on trial in Russia for money laundering. The Russian government had granted a temporary visa for the subject to come to the US. None of this information had been disclosed to our client; and upon verbally notifying our client, they cancelled the deal for failure to disclose information during the initial origination meeting regarding the loan.
"Failure to Disclose Litigation "
A Freight Line company, at onset the subject told our client that they were NOT involved in any litigation. No records showed up on database for Civil suit or Judgments. However, a physical search revealed over 150 Civil cases (most of them closed; however, some noted as closed and then re-opened). Unsatisfied Judgments totaled over $800,000.