Fraud-based Due Dilligence: FLECC model

Who benefits

Fraud-based Due Diligence benefits our Corporate Investors, including Limited Partners, Family Offices, Venture Capital Funds, and others, in Pre-IPO, SPAC, Private Equity, Venture Round and Series Fundings.

What it offers

Powered by our AI in-house tools, using OSINT (Open Source Intelligence), with our Human Intelligence and Deep Expertise, we deploy our in-house FLECC model to uncover the myth, provide factual evidences, analytical due diligence, and strategic roadmap to help our Investors prevent and detect Frauds which may impact their investment decision-making process.

FLECC model covers 5 key aspects:

Financial: investigate Accounting irregularities.
Legal: identify potential Legal problems and Regulatory concerns.
Ethics: evaluate potential issues related to Prevention of Money Laundering Act.
Commercial: identify unethical Commercial business practices.
Culture: evaluate Management practices and Human capital management.

How it works

Fraud-based due diligence entails investigating the parties to the transaction, potential risks, and investment’s quality to fully comprehend the situation.

Financial Review

Conduct thorough review of any financial obligations to uncover hidden problems, such as debts, repayment capability, tax liabilities, related party and undisclosed transactions.

Legal Review

Conduct thorough review focusing on legal obligations, potential legal problems, and other legal-related issues, to identify any potential legal liabilities and regulatory concerns.

Ethics Review

Conduct thorough review of potential unfair activities, creditworthiness, perform screening and background check, such as KYC – Know Your Client, AML – Anti-Money Laundering rules.

Commercial Review

Conduct thorough review to identify unethical commercial business practices. Evaluate available technology and commercialization feasibility, or if it is “too good to be true” situation.

Culture Review

Conduct thorough review of company culture and management practices, competence and reputation of executives, people management such as hiring, firing, whistleblowing.