Due Diligence is all about making informed decisions. From people, to companies, to associations, through to your own website security, Forensic Pathways focuses on giving you the intelligence you need. Our Forensic Due Diligence Service is about protecting you from external and internal threats from a business, financial and reputational standpoint.

Forensic Pathways Due Diligence service is unique. Whilst information is merely information, our Due Diligence service ensures that our clients are able to gain deeper business intelligence faster and in greater depth than before.

Why is Forensic Due Diligence important?

Whether you are involved in mergers and acquisitions or B2B partnerships, the key focus must always be managing risk, reputation and ensuring that information is available upon which decisions can be made confidently. Risk can be managed most effectively when all the information available has been gathered. The reputation of your clients, associations and your people has a direct impact on your company reputation both financially and in general business terms. Rogue partners, a lack of financial scrutiny and a lack of on-going monitoring of activity are all unnecessary risks. Ask yourself – do you really know who you are doing business with?

What do we offer?

We provide our clients with the most cost effective, efficient and comprehensive service for the purpose of vetting, identity checking, tracing, linking, monitoring, reputational analysis and ethical audits.

We have access to international information on people, companies, financial positions, declarations, associations, addresses, phone numbers, directors, shareholders, interests, stock reports and much more. Using these we cross-reference data and run a series of checks including:

• Tracking and tracing individuals, companies and organisations

• Analysing stock market data and activity

• Monitoring shareholders

• Vetting addresses

• Covert and automated monitoring of websites including ownership and ISP

• Mergers and Acquisitions

The data is extensive and internationally available and can all be monitored over time for significant changes and developments which are reported to the client.

Read through our Case Studys below and then contact us so we can start helping you.

Whether you have identified fraud or you suspect it, our fraud investigation service enables fast collection and analysis of evidence to ensure that crucial decisions can be made quickly preventing further losses. In cases where fraud has been detected, we can reverse engineer the process to ensure lessons are learnt and procedures put in place to avoid repeat occurrences.

Why are Fraud Investigations important?

Whatever your business area, fraud is a potential risk. With a focus on managing risk, information can be gathered and decisions made confidently to identify and stop fraud and prevent future occurrences.

Fraud can have a devastating impact on businesses so detecting it fast
is vital and preventing it in the first place even more so.

What do we offer?

We provide our clients with a cost effect, efficient way to identify potential fraud through the collection and analysis of relevant documentation.

We have access to international information on people, companies, financial positions, declarations, associations, addresses, phone number, directors, shareholders, interests, stock reports and much more.

We can use this information along with evidence seized to analyse the circumstances and detect and prevent potential fraud.

Fraud is a notoriously complex crime therefore the solutions we offer will be tailored specifically to the circumstances of the client. Please call us to discuss your specific situation and how we can help.

Ask yourself a few key questions:

1. Has your company spent time developing innovative products, processes or software?
2. Have you been a UK limited business for 12 months?
3. Do you pay PAYE and National Insurance contributions?
4. Would you like to claim some of your investment costs back?

Many companies spend years developing innovative products, processes and software and never claim back Research and Development (R&D) Tax Relief through the Research & Development Tax Credit Scheme. For some they are unaware that they are entitled to claim, for others it appears too complicated a process to go through, and for some they may not even realise that what they are doing falls into the category of innovation and that Research & Development Tax Credits are applicable to them.

HOW DO WE HELP YOU?

1. A free half day/full day assessment of your companies approach to innovation, your developments and potential opportunities for the identification of further innovation

2. Preparation of Technical and financial evaluation in readiness of submission of claim to accountant

3. Accountant submits claim to HMRC and liaises with HMRC re any queries

4. If approved HMRC issues payment to you (usually within a two month period)

It’s important to note that YOU DON’T HAVE TO BE MAKING A PROFIT TO CLAIM and you can also claim for projects that aren’t completed or exploited in the market place.

Why choose a Forensic company to help you?

Forensic Pathways has been involved in innovation and Intellectual Property (I.P) generation for over 10 years. We have significant experience in not only developing and exploiting our own Intellectual Property (I.P) but also work closely with many other companies to help them develop their Intellectual Property (I.P) strategy, including the management of Intellectual Property (I.P) and the identification of opportunities for Research & Development Tax Credits.

Our successes are as a result of understanding the process of innovation and understanding how Small and Medium sized businesses (SMEs) operate in terms of developing innovation.

Forensics is all about discovery. It’s about understanding and putting together the story. We have for a number of years helped many companies piece together the story of their own innovation in order to effectively submit Research & Development Tax Claims that appropriately reflect the level of investment they have made in developing their innovative products, processes or software. As an example a recent client successfully claimed £140,000 back through Research & Development Tax Relief on one year only. Prior to us working with them they hadn’t thought about claiming Research & Development Tax Relief. They went on to make a second successful claim.

Innovation and exploitation of I.P. is only part of the journey. It makes sense to optimise your opportunity to get a return on your investment quickly. Application for Research & Development Tax Credits ensures you get a return on your investment quickly.

Our Innovation Team would be delighted to work with you. Research and Development (R&D) Tax Credits should be part of your innovation journey. Let us ensure that your ‘innovation story’ is a successful one.

Why not Contact us to discuss if you are eligable.

CASE STUDY 1 – Middle Eastern Telecommunications Company

A large public Telecom organisation in the Middle East was expanding and preparing for public flotation. Rumours began to circulate across the country that the company was being defrauded because the technology security infrastructure had been breached enabling persons to gain free international telephone calls. The valuation of the company and the flotation itself were put at risk by these rumours. However, suspicions were aroused that rumours had been circulated by competitors keen to see the company damaged and to undermine the potential flotation value.

Two issues of risk required urgent attention:
• Firstly, the possibility of technical security breaches needed to be investigated
• Secondly, confidence had to be restored to support the valuation of the company and the pending flotation by demonstrating that due diligence was being exercised

Forensic Pathways services were used to investigate the possibility of security breaches. Errors were found in security procedures which could theoretically have led to real security breaches and the organised fraudulent access and use of the telecom network. These procedures were corrected and new security layers included.

As a result of these findings Forensic Pathways investigated the entire customer database of 15 Million accounts and uncovered suspicious duplicated customer records, accounts where excessive ‘Pay AS You Go’ air-time had been acquired (in some cases many years worth of air-time) without payment. Many of these accounts were found to lead back to one department within the company.

The findings were reported and the company took immediate action to overcome these security breaches, develop new policy and procedures and deal with the causes of the breaches (staff). The company later went to public flotation successfully with due diligence procedures in place and the security infrastructure intact. Confidence at a
national level in the company was restored along with the flotation valuation.

CASE STUDY 2 – Company Merger & Acquisition

A large technology company was in the process of entering into a Merger with a smaller company to provide international communications services worldwide. The Merger involved a £Multi-Million exposure for the technology company but the promise of a very profitable line of future business. The transaction involved the technology company investing a very large sum of money in the smaller company over a period of 2 years.

Forensic Pathways was asked to undertake due diligence into the transaction. It was discovered that the smaller company had failed to disclose links it had with other companies some with whom the larger company would not have wished to trade. Furthermore, evidence was uncovered of concerns about the true identity of some Directors who were
also found to be involved with many other companies some of which could be considered competitors.

From the original target company a further 120 linked companies were traced. A number were mainland European companies and some of the Directors although with different names appeared to be the same person. All in all, there were over 1,000 Directorships involved some of whom were implicated in law suits in foreign countries.

Forensic Pathways reported the findings which resulted in new negotiations and these in turn resulted in a major Bank Bond being secured to protect the transaction along with new protective performance and standard Terms and Conditions in the contract. Along with the Bankers Bond, these protected the company from termination, poor performance, fraud and other risk issues. The company was enabled to pursue the business successfully but protected with security.

CASE STUDY 3 – Fraudulent Identity in Banking and Insurance

Forensic Pathways was asked by a major High Street Bank to undertake due diligence investigations into a range of services it was offering including insurance services. It was decided by the Bank that it needed to assure itself that policy and procedures were sufficiently robust to prevent identity fraud and false insurance claims. Forensic Pathways identified and then examined a very large number of relatively new accounts opened using a new banking procedure and where
insurance policies had been purchased. Concerns were raised by Forensic Pathways about a large number of identities that were different ‘on paper’ but were linked with other identities and accounts in unexpected ways.

Further investigation of these accounts revealed a high rate of insurance claims and a high rate of failing to satisfy loans and mortgages. Forensic Pathways found that fraudulent documents had been used to open bank accounts and then insurance and loan products had been purchased using the accounts.

Forensic Pathways reported an exposure of £20 Million in insurance claims alone and another large sum in loans. By use of the Due Diligence Service Forensic Pathways was able to demonstrate a whole series of false identities orchestrated to commit fraud. £17.5 Million of the £20 Million exposure was repudiated and protected. The loss was limited to only £2.5 Million.

Due diligence revealed the need for immediate changes in policy and procedures and these were adopted.