Centry Quick Check Program for Corporate Due Diligence

New technology has revolutionized corporate investigations and changed the way we go about them. There’s greater efficiency, new insights, and broader reach. However, the downside is that this technology can lull both investigators and clients into a false sense of security.

Computers can provide us with information, but people are still better at evaluating data within context, such as identifying how useful the information is and what it is relevant to. In short, technology can’t yet replicate human analysis – and yet we continue to see a growing dependence upon it for exactly that.

The Value of Professional Investigators in Corporate Due Diligence

In countries where there are robust public records, this dependence on automated scanning and investigative tech is particularly evident. Although investors and corporations still recognize the value of actual investigators in challenging regions across the globe where the public records may not be so accessible or accurate, when it comes to investing in due diligence insidethe US and Canada for example, companies are increasingly drawn by the promise of these low-level automated scans.

However, it’s important to consider that these types of surface level scans will not and cannot encompass a breadth of understanding of an investigated subject. Software driven data harvests conducted without the analytical power of the human mind could expose businesses to risks they may be unaware of, including things like reputational risk, fraud, money laundering, and more.

Most of these automated scans lack coverage on the target in media, whether that’s on social platforms or journalistic content. This surface level research cannot hope to provide a clear and accurate picture of a subject, and it certainly would not appease judicial officials if something were to go wrong.

For example, single-location local records checks cannot account for whether a person has moved cities. It would also not pick up any information about whether or not the subject faced allegations of criminal activity, which is something that can be identified through doing a media assessment. Furthermore, media research can also illustrate any extreme political views or subjects that an investor or company might not want to be associated with.

The professional experience of a professional who has done hundreds, if not thousands of due diligence investigations is something that is highly valuable. They are more likely to be able to provide context around findings that may initially seem adverse, such as whether or not a particular practice is typical for a particular industry or they might pick up contextual clues that could uncover a previously overlooked detail.

Companies seeking to save a dime by purchasing an automated scan with no human inference could be unknowingly setting themselves up for a huge risk in the future.

Our Answer: Investigator Driven Quick Checks for Individuals and Companies

Propelled by increased regulatory concerns among corporate entities and a more competitive environment amid the offers of automated checks, Centry Global has formulated an answer to the question of how to marry meaningful analysis to efficiency in due diligence investigations with our Quick Check (QC) program.

What to Expect from a Centry QC

The QC program combines an identity review, sanctions screening, compliance check, and media research into a single, well-organized background check package on either individuals or companies with a turnaround time of 5-7 business days.

Quick Check of a Company

  • Identity Review
    • Key financial figures
    • Risk Level
    • Beneficial Owners and Senior Management
  • Compliance Review
    • Sanctions and Watchlists Screening
  • Social/Adverse Media Review
  • Analysis and/or Recommendations

Quick Check of an Individual

  • Identity Review
    • Shareholdings and Directorships
  • Compliance Review
    • Sanctions and Watchlists Screening
    • Politically Exposed Persons Screening
    • Litigations Check
  • Social/Adverse Media Review
  • Analysis and/or Recommendations

For more information on these Quick Checks, please feel free to contact us at info@centry.global or on our LinkedIn, Facebook and Twitter pages!

Cryptocurrency OneCoin revealed to be $3bn pyramid scheme

An international pyramid scheme involving the marketing of the cryptocurrency OneCoin has now been revealed. Konstantin Ignatov, his sister Ruja Ignatova and Mark Scott have been charged by the Southern District of New York (SDNY) for wire fraud conspiracy, securities fraud, and money laundering.

OneCoin is a Bulgarian-based company that was founded in 2014 and is still active today. The company’s main operations depended upon selling educational cryptocurrency trading packages to its members, who in turn receive commissions for recruiting others to purchase these packages. SDNY has identified this as a multi-level marketing structure and attributes that to the rapid growth of the OneCoin member network. The company claims to have more than 3 million members worldwide.

In a government press release, Manhattan attorney Geoffrey Berman said that the OneCoin leaders essentially created a multi-billion dollar company “based completely on lies and deceit.”

Leaders of OneCoin were furthermore alleged to have lied to investors to inflate the value of a OneCoin from approximately $0.50 to over $30.00. This was just one facet of a breadth of misinformation perpetrated by the leaders of the company, including claims about how how OneCoin cryptocurrency is mined by company servers, when in reality OneCoins are not mined with computer resources and the use of a private blockchain, which was found to be false in the investigation.

So how damaging was this scheme? The SDNY claims that between 2014-2016 alone, OneCoin was able to generate more than $3.7 billion in sales revenue and earned profits of approximately $2.6 billion. The investigation revealed that Ignatova and her co-founder created the business with the full intent of using it to defraud investors. In one email that was found between OneCoin’s co-founders, Ignatova described her exit strategy for OneCoin, which was simple to take the money and run and to blame someone else.

Konstantin Ignatov was arrested on March 6, 2019 at LAX, while his sister remains still at large. It is estimated that Ruja Ignatova could see up to 85 years in prison if she is found guilty on all accounts, as she faces five separate charges. Mark Scott was arrested in Massachusetts on Sept. 5, 2018 and faces 20 years in prison.

Many authorities across the globe have been notified of OneCoin’s fraudulent behaviours and have attempted to stop the company’s operations.

This article was written by Kristina Weber of Centry Global. For more content like this, be sure to subscribe to Centry Blog for bi-weekly articles related to the security and risk industries. Follow us on Twitter @CentryGlobal!