People in corporate leaderships, especially those holding executive positions in both public and private sectors, often find themselves in reports that expose their unethical actions. Such cases are the reason why Corporate Resolutions conducts executive background checks. It is imperative for companies to settle for a reliable investigations partner when they are hiring a new board member, an M&A partner, or a new CEO. Conducting executive background checks eliminates the chances of unpleasant surprises being uncovered by the Securities and Exchange Commission (SEC), the media, shareholders, or other involved parties.
Why are executive background checks important?
Executive background checks help to verify the due diligence of candidates in high profile positions. With the competitive nature of the job market, most firms have had to deal with rampant cases of candidates lying about their credentials or even covering up their past crimes so that they can land executive positions. Corporations need to keep in mind that when they hire an untruthful individual in an executive position, the lack of skills or past crimes could cause the organization a fortune. A company caught up in such a crisis might end up losing its competitive edge in the market even after the deceptive executive is fired.
Corporate Resolutions has conducted many extensive executive background checks, and it has managed to uncover some untruthful individuals. For instance, the firm was able to help a client who wanted to invest in Centurion Credit Management, a hedge fund run by Murray Huberfeld. After extensive investigations, Corporate Resolutions found some red flags. Murray’s associates had been sued for fraud a couple of times, convicted of fraud, sanctioned by the Securities and Exchange Commission, and made stock transactions without the proper regulatory authority. Additionally, Murray Huberfeld had been arrested for issuing forged identification documents to a person he had hired to sit his Series 7 exams.
Had the client failed to screen the hedge fund and its shareholders and followed through with the investment, serious problems would have followed. This is because Huberfeld and his associates faced charges of fraud and corruption in the years that followed.
How to run an executive background check
An executive background check begins with verifying basic information, which is then followed by employment verification. Executive background checks experts have to verify that the individual(s) certifications and employment dates are correct. Any red flags identified call for further investigations.
The next step involves assessing the criminal records to ascertain that the candidate for the high-profile position is trustworthy. It involves county court checks, civil checks, and state criminal record checks.
After the verification of criminal records, the experts check the candidate’s credit to ensure that he or she meets FCRA requirements. The experts also verify the candidate’s referees to establish that he or she is indeed truthful. The results from the executive background check will determine if the individual is the right person for your firm.