Case Study – Due Diligence Investigation

The Board of Directors of a Swiss company, owned by a Luxembourg group, mandated BDO Luxembourg to conduct in-depth due diligence on a potential investor introduced by an external intermediary. The company had been paying the intermediary a monthly retainer for identifying potential investors.

Our investigation revealed that the intermediary had been invoicing the company through a bankrupt entity and had a history of connections to other bankrupt entities. Furthermore, the investment proposal was found to be fraudulent, with documents referring to a fictitious company purportedly based in the Middle East. Additionally, we uncovered a link between the intermediary and the company’s former CFO.

Following our findings, the company terminated its contract with the intermediary and initiated legal proceedings.