Conducting background checks is crucial for many businesses, legal professionals, and investors during the hiring, acquisition, or screening process. These checks serve to verify the information provided by job applicants, business owners, and partners. They can help confirm their qualifications, reliability, and suitability for the role. By performing a background check, you can obtain information such as a candidate’s work history, educational background, criminal records, and other pertinent details. This can assist in identifying potential red flags that may uncover hidden skeletons in a closet.
Private investigators play a critical role in the background check process. We are trained professionals who use a variety of methods, such as interviews, surveillance, and public records research, to gather information. Our services are frequently utilized to verify employment history, education, criminal records, investments, and conduct reference checks, as well as to look for any potential warning signs.
For Employers
Conducting a thorough background check can aid employers in identifying job candidates who may have provided false information on their resumes or applications. This is particularly relevant for employers in sectors that demand a high degree of trust, such as finance or healthcare, where the integrity of the employees is of paramount importance.
Early this year (2023), federal authorities announced a large-scale operation targeting fraudulent nursing diploma schemes. They uncovered a criminal network that is accused of selling over 7,600 fake nursing certificates. This could potentially result in 7,600 multimillion dollar lawsuits for the employers who might have hired these individuals.
A background check can also reveal any past legal troubles or financial difficulties that may indicate a candidate is not suitable for the position.
This same year, George Santos was elected to the United States House of Representatives for New York’s 3rd congressional district. However, it was later discovered that much of his background information was fabricated, leading many industry investigators to label the background check as a disgrace to the institution.
In today’s economy, a background check also helps to protect the company’s reputation, as well as the safety of other employees and customers. It also can help to protect the company from potential legal liabilities, such as negligent hiring claims.
For Investors
Background checks are an essential tool for business investors as they provide valuable information about the individuals and companies they are considering investing in. This information can help investors make more informed decisions about where to invest their money and can help identify potential risks or red flags that may indicate an investment is not suitable.
For example, a background check can reveal a company’s financial history, including any bankruptcies or outstanding debts, as well as any legal disputes or investigations that have taken place. It can also provide information about the company’s management team, including their experience and qualifications, which can be important indicators of the company’s future success.
Similarly, background checks on individuals, like the business owner or key employees, can reveal any criminal records or other potential liabilities that could negatively impact the business.
By conducting background checks, investors can gain a better understanding of the risks and potential rewards associated with an investment, which can help them make more informed decisions.
For Mergers & Acquisitions
By conducting background checks on the companies and individuals involved in a potential merger or acquisition, M&A attorneys can identify any potential legal or financial issues that could pose a risk to the transaction. This can include things like outstanding lawsuits, previous bankruptcies, or financial fraud – like inflating assets, or inflating the valuation of a company, etc.
Similar to the information we give Investors, a due diligence background check can also provide insight into the individuals involved in the transaction, such as the management team or key shareholders, which can be important for assessing the viability and stability of the company. This can also help M&A attorneys to identify any potential conflicts of interest or red flags that could negatively impact the transaction.
Additionally, background checks can also aid M&A attorneys in identifying any regulatory compliance issues and risks that could arise in the course of the merger or acquisition. Having a comprehensive understanding of the parties involved in the transaction can help M&A attorneys to make more informed decisions, negotiate better deals and minimize the risk of legal and financial issues arising after the transaction.
A Peace of Mind for the price of Two Cups of Coffee…
When it comes to background checks, there are two main types that are commonly used by people. The first type is the cheap, online background check that can be purchased for as little as $19.99. These online background checks use public records and often provide outdated information, which may not be accurate or complete. This can lead to a false sense of security for the employer, as they may not have all the information they need to make an informed decision about a subject of their investigation. When you truly think about it, a court sells you a copy of a document for $7.50 (on average).
The Florida court system alone is composed of:
- The Florida State Supreme Court
- Five District Courts of Appeal: Which are the state’s intermediate appellate courts.
- 20 Circuit Courts: Which handle civil cases involving more than $30,000 and criminal felony cases
- 67 County Courts (one for each of Florida’s 67 counties): Which handle civil cases involving $30,000 or less and criminal misdemeanor cases.
This is not including the 373 Law Enforcement agencies in Florida. If you’re looking to run a superficial background check composed of public information – $20 can get you by.
At least… that’s what these people though:
A prominent university in Arizona has made a significant decision. In a memo, the University President announced a policy change to require all graduate assistants to undergo background checks. This announcement comes roughly three months after a graduate assistant from the hydrology department allegedly shot and killed a professor. Currently, the graduate assistant remains in jail without bond on a charge of first-degree murder; the assistant has pleaded not guilty. – Arizona.edu
After the shooting, the university discovered that the graduate assistant had a history of violent behavior. In addition, the graduate assistant had a ten-year-long criminal history in other states when he started working at the university. Unfortunately, the university did not know about this history before hiring him for the assistantship. This ignorance comes as a consequence of not conducting criminal background checks on its graduate students.
A Danvers Massachusetts nursing home received a fine of over $30,000. This fine resulted from allegations about an uncertified nursing aide who sexually abused three of the facility’s residents. Allegedly, the nursing home did not run a background check on this uncertified nursing aid. As a result, the assaults occurred during the summer of last year, and the Centers for Medicare and Medicaid Services Department of Health and Human Services (HHS) investigated the complaints. – Medicare.gov
The cost of a failed background check cost the Life of a Professor and $30,000 to a Nursing home.
When your reputation is on the line, $19.99 for a background check is not enough.
The second type of background check is a due diligence investigation. These types of background checks are typically for M&A attorneys, investors, or high-networth clients doing inner circle due diligence, or for people and employers who are trying to protect their reputation, people, investments, and assets.
Due diligence background checks are a thorough investigation of an individual’s personal, professional, and financial history. This type of background check is typically conducted by private investigators who have access to various resources and databases that are not available to the general public, and sometimes, other private investigators. The tools used on a Due Diligence Investigation are typically cost prohibitive for a run-of-the-mill private investigator. We use these resources to find and verify information, such as their employment history, criminal records, credit history, and education.
The information gathered during a due diligence background check is usually more detailed and accurate than what can be found through an online background check. They require more time and resources to conduct. On average, a due diligence investigation can cost $2,000 or more. However, it is considered a worthwhile investment for employers, attorneys, and investigators as it helps them to make more informed decisions about their subject and to identify any potential risks. In those two examples above (From January 2023) – the background check would have saved a life and a fine of $30,000. That’s not even taking into account the cost associated with potential lawsuits that will surely be coming down onto those institutions.
With a due diligence background check, our clients can have confidence that they have all the information they need to make an informed decision. This type of background check provides a much higher level of security and peace of mind for employers, as they can be confident that they have hired the right person for the job.