International Due Diligence Reveals Borrower’s Litigious History in Mexico
An asset-based lender with a U.S. client operating a plant in Mexico engaged CaptureINTEL to perform a global background investigation on the borrower—who was a Mexican national. Given the cross-border nature of the business relationship, it was essential to conduct due diligence both in the United States and Mexico.
While the U.S. portion of the investigation revealed standard results, the search in Mexico uncovered several plaintiff-initiated lawsuits filed by the borrower. These suits named a variety of defendants, including prior financial institutions, the Mexican federal government, and other business entities.
Although the Mexican legal system does not typically disclose case outcomes or dispositions, CaptureINTEL was able to retrieve full court dockets and details of the legal complaints. These findings revealed a consistent pattern of litigation behavior, raising concerns about potential future disputes and risk exposure.
By identifying the borrower’s history of initiating legal action, CaptureINTEL provided the lender with critical insight into the borrower’s temperament and business conduct—allowing them to proceed with greater caution and context.
Global Due Diligence Uncovers Hidden Identity and Fraud Conviction
A private equity client engaged CaptureINTEL to perform global due diligence background checks on the executive leadership team of a Canadian acquisition target. At first glance, the leadership team appeared to meet the standards expected for a deal of this scale. However, our investigation uncovered a major red flag that could have significantly impacted the transaction.
One executive, who had presented himself as a Canadian national, was in fact from an Eastern European country. Further investigation revealed that he had legally changed his name and assumed a new identity to conceal a serious criminal past.
CaptureINTEL discovered that this individual had previously been convicted of a $6.5 million fraud scheme in the United States and had served time in a federal prison. His new identity and misrepresented nationality were clear attempts to distance himself from his criminal history.
Our findings enabled the client to reassess the risk profile of the acquisition and ultimately take informed action before proceeding with the deal. This case reinforces the value of deep, global due diligence—particularly when leadership integrity and reputational risk are on the line.
International Due Diligence Uncovers Fraudulent Offer Letter and Protects Client from Risk
A client approached CaptureINTEL to verify the authenticity of an offer letter they had received from a prospective buyer and funding source located outside of the U.S. Given the international nature of the transaction, it was crucial for the client to confirm the legitimacy of the deal before moving forward.
Through a comprehensive international due diligence investigation, CaptureINTEL uncovered that the offer letter was, in fact, fraudulent. While the companies and individuals named in the letter were legitimate, they were completely unaware that their names were being used in the scheme. The fraudsters had falsely identified them as the funding source, putting the client at risk of being drawn into a scam.
Our investigation revealed several discrepancies and red flags, which ultimately proved that the offer letter was part of a broader fraudulent scheme. Armed with this information, the client was able to avoid potential financial loss and reputational damage.
This case highlights the importance of conducting thorough due diligence, especially in international transactions where the risk of fraud and misrepresentation can be high. CaptureINTEL’s investigation provided the client with the peace of mind needed to make a fully informed decision.