Brazil Case Study: Tackling Conflict of Interest Challenges Head-On

A chemical company suspected two former employees were engaged in a potential conflict of interest through their relationship with a company vendor. With thorough enhanced due diligence, Kreller uncovered evidence suggesting a connection between the two individuals and the vendor.

The Investigation

Kreller conducted a comprehensive due diligence investigation, including a site visit as a potential vendor company client. During the visit, Kreller met with the recently terminated employee and obtained his business card, which identified him as a vendor director.

Key Findings

During this investigation, the corporate registration records provided proof that the second former employee was listed as an administrator for the vendor.

The Result

The client immediately terminated the contract with the vendor and conducted an audit of all transactions to date.

Conclusion

Corruption, scandal, government connectivity, and litigious history are a few challenges when operating in Brazil. Enhanced due diligence can assist in ensuring you are engaging with a potential partner, not a potential liability. The risk factors are high, but the opportunities can be lucrative. Approach with caution and make certain to research all engagements properly. Trust Kreller to provide the international corporate investigations needed to protect your company.