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Have you noticed how often you hear about scams and rip-offs all the time? You might often think, “That will never happen to me.”

 

However, the truth is that it CAN happen to anyone – and it actually does.

 

So, if you are taking on a new client, or if you are getting involved in a new investment, or partnering on a new venture, or simply getting married, it is important that you know enough about the person or the company you are dealing with.

 

A due diligence may actually save you a lot of money, time and stress down the road.

 

So, how do you really know who you are dealing with?

 

An EXECUTIVE SEARCH may help turn up previous actions that the person or business has been involved in, and that information can provide clues about their character.

 

An EXECUTIVE SEARCH may turn up actions and debts that have not been disclosed by the person in question.

 

An EXECUTIVE SEARCH may also turn up unsavory conduct that the person or business is or has been involved in.

 

An EXECUTIVE SEARCH may also show that the big, flashy house is either mortgaged or rented to excess.

 

Samuel “Mouli” Cohen

Let as take Samuel Cohen, an Israeli entrepreneur, venture capitalist and executive, as an example. He has held the positions of chairman, president, and CEO of several private and public video game companies in which he has generated over $3 billion in shareholder value.

 

In 2012, however, he was sentenced to 22 years in federal prison for a conviction on wire fraud (15 counts), money laundering (11 counts), and tax evasion (3 counts).

 

In 2009, Samuel Cohen defrauded investors of more than $28 million and that time, two lawsuits were filed. He told investors that his company, Ecast Inc., was on the verge of being acquired by Microsoft. Based on false representations, there were victims who purchased some of Cohen’s found shares in Ecast. In 2010, a federal grand jury indicted Cohen on 32 felony counts of money laundering and fraud, and he was arrested in August 2010.

 

The evidence at the trial showed that Samuel Cohen collected more than $30 million from defrauding over 55 investors. He was also cited as being largely responsible for the eventual dissolution of Vanguard in 2011.

 

The prosecution had described Cohen as a serial fraudster and a congenital liar. It was recommended to the court that Cohen be sentenced to between 30 years to life and that he be denied bail while awaiting sentencing.

 

The Moral of the Story

So, whether you are dealing with a local, national or international company, having an executive search can be invaluable in terms of giving you a peek into what or who you are dealing with. Do not shy away from opportunities – you just have to know who you are dealing with.