Indicia of wealth and success often dazzle prospective partners, inviting them to short-cut scrutiny of credentials and background. They do so at their own risk.
The Problem
A networking group for high-net-worth individuals received complaints regarding a member. Specifically, other group members voiced concern about her apparent lack of business acumen and skepticism about the source of her wealth. The group had initially ordered a “background check” from an online service, which reported no litigation or financial issues for the subject. They sought to learn more about the member’s background, source of wealth, and any reputational issues that could reflect poorly on the organization and its members.
Our Solution
Upon digging into the member’s background and geographic footprint (which spanned at least four countries), a picture quickly emerged that contradicted how she had presented herself to our client. Rather than being an innovative business leader who had amassed her own fortune through hard work and entrepreneurship, we learned the subject— after moving to the US in the late 1990s to complete law school—worked as an attorney for less than five years before marrying a businessman who had started several telecommunications companies. He subsequently sold one of these companies for more than $100 million, at which point the couple was sued in two related Racketeer Influenced and Corrupt Organizations (RICO) Act cases filed by former employees of the company, alleging the couple was co-mingling their companies’ funds to dilute the plaintiffs’ ownership interest and that the couple had partnered with—and given significant cash gifts to—known members of a crime syndicate. Court documents indicated that while our subject held various titles at the company, she in no way actually worked there or contributed to its operations. Rather, the plaintiffs alleged she had improperly used company funds to purchase international vacations, various luxury goods such as jewelry and handbags, and multi-million dollar properties for her own personal use.
Research also identified a divorce record for the subject, in which the subject’s ex-husband alleged she purposely moved the family abroad to file for divorce in a more financially favorable jurisdiction. In ongoing custody cases pertaining to the former couple’s children, her ex-husband also alleged that our subject’s current husband physically abused their children and our subject failed to intervene.
The Outcome
Upon reviewing our findings, our client had a much deeper understanding of the member’s background, professional experience (or lack thereof) and financial position. The group also was aware of her prior and ongoing legal issues— including the sensitive information concerning her family and the allegations of ties to organized crime and improper use of company funds, all of which was a matter of public record. Based on our findings and their own concerning experiences with this member, the client ultimately terminated her membership.