Many of us have heard the phrase "penny wise and pound foolish", but have you ever thought about it in the context of due diligence? Not to provide a history lesson to everyone, but this phrase has long been attributed to Benjamin Franklin when it was actually coined by Robert Burton in his 1621 work, yes that long ago, The Anatomy of Melancholy.
This phrase popped into my head when reading an article recently about a businessman who lost over $2 million dollars to a con man, for lack of a better term, who had a long history of defrauding his business partners. After the money had been lost, the defrauded businessman hired a professional investigator to see if any of the funds could be recovered, kind of "closing the barn door after the horse has bolted" to quote yet another well known phrase. The professional investigator discovered a trail of previously defrauded business parters this con man had taken to the cleaners over the years and that the $2 million dollars was long gone.
Every time I read a tale of someone losing their hard earned money in a fraudulent scheme, my first thought is "I wonder if they did any due diligence?" In most instances I'd bet good money that they didn't. Otherwise smart business men and women try and save money when a small investment into a due diligence background check by a professional investigator could have found any red flags that exist. In the example above, by spending $3,500, the average cost for a due diligence background investigation, less than 1/4 of 1% of the $2 million lost, the defrauded businessman would still have their $2 million dollars and would have had a lot less sleepless nights that I guarantee they suffered through and probably continue to do so.
Are you in the process of entering into a business deal or other investment of any size and think you can't become a victim of fraud? Think again. Even individuals you may have known for years can be capable of defrauding you. Spend a little time, and money, and reach out to a professional investigator as a trusted adviser to make sure you don't become a victim. My firm and our team of professional investigators have conducted numerous due diligence investigations and would be happy to discuss your needs. Just give us a call or send us a quick email and someone will respond as soon as possible.
Lee Walters
President
EXCALIBUR Private Investigation
Serving all of Colorado, New Mexico and South Carolina
www.excaliburlegalsupport.com
719.208.4088; 505.208.6400; 803.806.7800
This phrase popped into my head when reading an article recently about a businessman who lost over $2 million dollars to a con man, for lack of a better term, who had a long history of defrauding his business partners. After the money had been lost, the defrauded businessman hired a professional investigator to see if any of the funds could be recovered, kind of "closing the barn door after the horse has bolted" to quote yet another well known phrase. The professional investigator discovered a trail of previously defrauded business parters this con man had taken to the cleaners over the years and that the $2 million dollars was long gone.
Every time I read a tale of someone losing their hard earned money in a fraudulent scheme, my first thought is "I wonder if they did any due diligence?" In most instances I'd bet good money that they didn't. Otherwise smart business men and women try and save money when a small investment into a due diligence background check by a professional investigator could have found any red flags that exist. In the example above, by spending $3,500, the average cost for a due diligence background investigation, less than 1/4 of 1% of the $2 million lost, the defrauded businessman would still have their $2 million dollars and would have had a lot less sleepless nights that I guarantee they suffered through and probably continue to do so.
Are you in the process of entering into a business deal or other investment of any size and think you can't become a victim of fraud? Think again. Even individuals you may have known for years can be capable of defrauding you. Spend a little time, and money, and reach out to a professional investigator as a trusted adviser to make sure you don't become a victim. My firm and our team of professional investigators have conducted numerous due diligence investigations and would be happy to discuss your needs. Just give us a call or send us a quick email and someone will respond as soon as possible.
Lee Walters
President
EXCALIBUR Private Investigation
Serving all of Colorado, New Mexico and South Carolina
www.excaliburlegalsupport.com
719.208.4088; 505.208.6400; 803.806.7800
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