Due Diligence and Business-Competitor Investigations

Pre-transaction/ Pre-employment

Fraudulent misrepresentation is considered active fraud and is the most serious. Fraudulent misrepresentation is not only misrepresenting a detail about a transaction, but doing so purposefully in order to deceive another party.

Six conditions must be met for fraud to be present. They are:

  • An individual must make a false representation
  • The misrepresentation is material to the transaction
  • The misrepresentation is made with knowledge of its falsity or disregard as to its truthfulness
  • The misrepresentation is made with the intention of inducing action or lack of action from the other party
  • The other party relies on the lie to make their decision
  • The lie must proximately cause the other party to suffer damages

Fraudulent Misrepresentation is a civil offense and the immediate remedy in civil court for misrepresentation is rescission. The court will act as if the contract or transaction never existed. It is important to note that the defrauded victim must act promptly! In addition the court can allow damages for losses suffered because of the lie.

Fraudulent misrepresentation is the most difficult type of misrepresentation to prove because of the need to demonstrate intent.

The way to avoid being victimized by fraudulent misrepresentation is through due diligence. Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations.

A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers.

The risks inherent in today’s financial transactions are greater than ever. The Ingenium Consulting Group provides answers to questions that financial and legal analyses cannot address, especially regarding integrity issues and the reputations and backgrounds of counterparties and potential employees.

We tailor our investigative due diligence to each client and their specific needs, and our work entails a thorough review and analysis of public records and inquiries of human sources. Ingenium does not rely on databases and computer-based sources alone. These sources are often incomplete or updated only sporadically. As such, Ingenium conducts onsite research and analyzes this information to identify risks.

Services Offered:

  • Verification of corporate registration & licensing if any required.
  • Names of Key officers or contact people
  • Lawsuits, judgments, liens, Bankruptcies
  • Company credit rating & annual revenues
  • Name Variation(s)/DBA(s)
  • Telephone(s)
  • Address Variation(s)
  • Profile Information
  • Company Name
  • State of Incorporation
  • Duration:
  • Charter Number
  • Status Of Incorporation
  • Corporation Structure
  • Executive(s)
  • Names & Titles
  • Company ID Numbers (FEIN)
  • Judgment and Lien Information
  • Creditor(s)
  • Debtor(s)
  • Amount
  • Type
  • Filing Date:
  • UCC Lien Information
  • Business Entities – associates
  • Person Associates
  • Dun & Bradstreet – business report
  • TRADE PAYMENT EXPERIENCES-Banking Information
  • Vehicles & Watercraft registrations
  • Public Records

Expanded Business Search:

  • Verification of corporate registration & licensing if any required
  • Name and address of registered agent
  • Names of Key officers or contact people
  • Liens, Judgments, Bankruptcies
  • Lawsuits – nationwide court search
  • Company credit rating including annual revenues
  • Dunn & Bradstreet Report

 Comprehensive Business Search

  • Verification of corporate registration & licensing if any required
  • Name and address of registered agent
  • Names of Key officers or contact people
  • Liens, Judgments, Bankruptcies
  • Lawsuits – nationwide court search
  • Company credit rating including annual revenues
  • Dunn & Bradstreet Report
  • Experian Business Credit report
  • Securities & Exchange (SEC) enforcement action search
  • Name Search on ALL executives including verification of affiliation.
  • Criminal background search on ALL executives including Federal & State
  • Internet Domain registration verification
  • Telephone listing verification
  • Corporate asset search
  • Search for OSHA violations

Pre-employment and Screening

One of the biggest expenses and most time consuming functions for any employer is the screening and hiring of prospective employees. The need to adequately screen your applicants is essential. Many applications contain misrepresentations about the applicant’s education, employment, or criminal records.