Kroll discloses criminal past of newly-hired CEO
Kroll was retained by a Fortune 50 bank to conduct pre-IPO due diligence on a transaction. The investigation disclosed that the newly hired co-CEO and COO, recruited from another Fortune 100 company, had criminal convictions and had served jail time for 18 counts of larceny and check fraud pertaining to a check-kiting scheme that netted nearly $750,000. The Kroll expert testified in deposition and arbitration on the damages from the alleged breach of the purchase agreement and the implications of the perceived lack of internal controls at the company given the misappropriation of cash and concert revenue by the co-presidents.