CRI Uncovers Potential Investor’s Felonious Ties
The sole owner of a large chain of convenience stores was eyeing retirement and considering selling a controlling interest in his company to an investment team. Eager to ensure that his legacy – the business he had built from the ground up – was in good hands, the client asked CRI to perform due diligence on the proposed investment team.
Our investigators found that there was a passive investor in the deal whose involvement or identity had not be shared with the owner. Unclear about the failure to disclose the passive investor, our team concentrated its efforts on better understanding his background and role in the investment. We ultimately learned that the passive investor was recently released from prison after being convicted of several charges of money laundering. Additional details made clear that the investment team was likely interested in using the chain of convenience stores for illicit purposes, namely a pass-through for money laundering operations.
The client quickly reconsidered the investment offer.