Lightstone Solutions has hands on experience doing domestic and international investigative due diligence in over 50 countries in Africa, Australia, Asia, Central America, Europe, Middle East, North America and South America as well as various offshore jurisdictions. We are a boutique firm and tailor our services to the needs of a discriminating and often highly-regulated client base.

Investigative Due Diligence is an analysis of the background and often hidden information of third parties that allows the concerned and prudent investor to responsibly and confidently invest with that third party. A necessary part of corporate compliance programs, investigative due diligence is separate and distinct from legal and financial due diligence, yet in many respects equally vital in these political and economic times.

The public face of any company, its principals, executives and managing directors rarely gives the full story – and increasingly it is becoming a requirement for compliance officers, fund managers, analysts and other executives to investigate any potential business partner or investment. In the wake of notorious investment frauds and failures, the level of investigation that was conducted is increasingly coming under scrutiny. By hiring experts in Investigative Due Diligence, decision makers are being both prudent and are immediately ensuring that they are being seen to be carrying out thorough business practices and precautions. For many decision makers, Investigative Due Diligence provides political insurance against future issues that may arise.

The convergence of the Foreign Corrupt Practices Act (“FCPA”) and the Patriot Act means that not conducting Investigative Due Diligence could result in significant fines and even jail time for anyone involved in the decision making process. The FCPA makes it illegal for U.S. citizens and companies, their officers, directors, employees, agents and even certain stockholders, to bribe foreign officials. Without Investigative Due Diligence, it is often impossible to know whether the principals with whom you are dealing are public officials. Not to mention that you don’t know anything about their family members, close friends and/or silent partners. The Patriot Act requires companies to conduct reasonable due diligence to ensure that transactions do not facilitate money laundering or other illegal activity. Thus, compliance with the Patriot Act requires that Investigative Due Diligence be conducted into whether parties with whom you are transacting business are known terrorists or associated with such people.

In comparison to the size of typical investments and risks involved, Investigative Due Diligence is a most cost-effective means of protection. Investigative Due Diligence is an efficient and effective shield protecting the interests of the investor. This is accomplished by revealing the missing pieces, the inconsistencies and the hidden details that can lead to significant investment loss, regulatory enforcement action, fines, public criticism, or even jail time for the decision-makers.

Investigative Due Diligence includes in-depth research into areas concerning entities and their principals such as: