Check Baker's bio here at his Fox column, which refers to him as recently returning to Diligence - the occasionally controversial investigative firm he co-founded with former MI6er, Nick Day.

What's this all about?

The folks at Intelligence Online may have the skinny. They've just posted an article about a Nick Day buy-out of the recently founded Baker business intelligence outfit, Prescience.

-- MDT

Labels: Diligence LLC, Mike Baker, Nick Day, Precience

This IPOC story just gets weirder and weirder... Remind me to never, never get in a pitched battle over lucrative telecom contracts with very rich and very shady Russian businessmen.

Keep an eye out for a cameo in the article from the fine folks at Kroll as well as a brief recap of how Diligence LLC's ill advised involvement (and bad judgement) cost them some serious cash.

The IPOC tag below will also lead you to the full background, should you need it.

-- MDT

Labels: Alfa, Diligence LLC, IPOC, Kroll, Leonid Rozhetskin

Really interesting stuff here from Conde Nast Portfolio (great magazine, even better website) on the movement of government spooks into the private sector. This article is an absolute must read.

Included in the piece is big coverage of the recent shenanigans at Wal-Mart along with name-checks of spy-heavy investigative outfits like Diligence LLC, GlobalOptions, Trident Group, Kroll and Business Intelligence Advisors.

You'll see reference to many of the recent scandals that have been attached to these names (and covered in this space - click the tags below for past Daily Caveat coverage). You'll also get a bit of history on how spooks came to find their way into the private sector.

Again, highly, highly recommended reading...

Labels: BIA, CondeNast Portfolio, corporate espionage, Diligence LLC, GlobalOptions, Kroll, Trident Group

This quagmire seems to get nothing but deeper...

The Diligence / IPOC story is a convoluted one, but at the meat of it are two Diligence investigators who apparently pretended to be British Intelligence operatives in order to pump KPMG emplyees for information on an onging money lanudering investigation into the Bermuda based, Russia connected IPOC International Growth Fund.

Diligence was subsequently sued by KPMG alleging bribery, deception, and computer hacking. Diligence was also sued separately by law firm, Barbour Griffith & Rogers, their apparent client in this mess. BG&R had reportedly hired Diligence on behalf of the Alfa Group, an entity competing against IPOC for control of lucrative Russian telecom business.

Meanwhile, a lawyer representing IPOC made claims that another investigative firm, Kroll, had broken into the email of Bermuda law firm, Wakefield Quin, seeking data on the matter. While this claim was ultimately unsubstantiated, Kroll WAS also active in the matter - not in Bermuda, but rather in Europe.

Kroll's IPOC involvement was confirmed by the chair of a Geneva audit panel charged with making decisions about whether IPOC or the competing Alfa Consortium would end up with the rich prize of OAO MegaFon telecom shares - worth about $2.5 billion (and you wondered what all the fuss was about...). Kroll is (was? - need to check on this) currently under investigation by Russian authorities due to their activities in the case.

But I digress. Back to the (relative) here and now. Let's let Law.com do the talking:

Diligence’s problems began in earnest in September 2005. Court documents show that the company accused its then-chief financial officer, Igor Alexeev, of stealing internal documents, directing employees to erase data from Diligence computers, and encouraging workers to leave the company. Nick Day, Diligence’s CEO, fired Alexeev on Sept. 28.

Weeks later, a sheaf of Diligence e-mails appeared at the offices of accounting firm KPMG in Montvale, N.J. The messages detailed an operation straight out of a John le Carré novel. (The document drop and details of the operation were first reported by BusinessWeek in February.)

Posing as British and American intelligence agents, Diligence operatives infiltrated a KPMG office in Bermuda, according to court papers. The goal: to get their hands on a draft audit KPMG had conducted on IPOC International Growth Fund.

The audit contained potentially damaging financial information that could be used against IPOC in a high-stakes fight over control of Megafon, a $1.5 billion Russian telecom.

Diligence had been hired by Barbour Griffith, which, in turn, had been hired by Alfa Group Consortium, a Russian conglomerate, to turn up dirt on IPOC. Alfa was also battling for Megafon and would later use the information from the audit against IPOC in an arbitration over Megafon’s ownership.

Officials at Diligence were virtually certain, according to media reports, that Alexeev had burned their investigation and tipped off KPMG. Claims and counter claims were filed between Diligence and Alexee and the whole thing turn ten shades of ugly, even as the ramifications of Alexeev's alleged leaks took their toll on the company.

Currently the whole mess is in arbitration, which is where the story takes another interesting turn...

Lawyers for Diligence have subpoenaed any communications between Alexeev and Terry Lenzner, head of the DC-based Investigative Group International. The material turned over so far suggests that Winston & Strawn hired IGI to assist in IPOC’s lawsuit against Diligence. Well slap my face and call me Aunt Sally... Beat that for your scandal dollar: Diligence, Kroll and IGI all wrapped up in one tangled international mess.

Check out the full Legal Times article for expanded details. There is also a load of past reportage relating to IPOC available via the TAGS below.

-- MDT

Labels: Alfa, corporate scandal, Diligence LLC, Investigative Group International, IPOC, Kroll

The Government Accountability Project has released a more in depth look at the previously reported potential conflicts of interest at the (2005-2007) Paul Volker-headed World Bank Department of Institutional Integrity.

Notable to The Daily Caveat is the re-occurring mention of the corporate investigative firm, Diligence LLC. in GAP's report. You can check out the report right here. Also see our March'07 post for further details.

-- MDT

Labels: Diligence LLC, Paul Volker, World Bank

We've written extensively in the past on the Bermuda-based end of the scandal surrounding the IPOC investment fund, KPMG and investigative firm, Diligence. Diligence got caught with its mits in the cookie jar trying to pry sensitive information about an IPOC audit out of KPMG. Kroll, probably the most prominent investigative firm around, was also at least implicated in the back-and-forth clandestine activities between the two sides in the IPOC dispute.

Kroll WAS also active in the matter but not in Bermuda - in Europe. The EU-based accusations (dumpster diving, attempting to access private bank accounts) come from Bernard Meyer-Hauser, chair of a Geneva audit panel charged with making decisions about whether IPOC or the competing Alfa Consortium would end up with the rich prize of OAO MegaFon telecom shares - worth about $2.5 billion. Kroll is currently under investigation by Russian authorities due to their activities in the case.

The back-story here is, well.....complicated. Law.com has an excellent overview of the entire affair, from start to finish. This is required reading.

-- MDT

Labels: Alfa, corporate espionage, Diligence LLC, IPOC, Kroll

World Bank majordomo, Paul Wolfowitz has appointed Paul Volker, former Federal Reserve Chair and St. George of stagflation, to lead a review of the World Bank's Department of Institutional Integrity (INT).

However representatives from the nonproft Government Accountability Project have raised questions about certain INT staff, their history with Volker and their relationship to investigative firm, Diligence, LLC:

Specifically, GAP has learned that Board members and staff are concerned about the connection between Glenn Ware, a Senior Advisor on fraud and corruption at INT, and Diligence LLC, a private firm...

[GAP contends that]...A proper review of INT's practices would involve a probe into Ware's move from the World Bank to Diligence in 2005, and Diligence acquiring an INT contract within sixty days of Ware becoming an employee there.

Adding to that, Ware has since rejoined INT and Diligence has four investigators who worked with Volcker on an independent corruption inquiry into the U.N. oil-for-food program. These four employees also worked for INT earlier.

GAP International Program Director Bea Edwards stated, "Because of his own connections with these Diligence personnel, Volcker cannot impartially evaluate the company's relationship to INT."

To be clear, GAP has not made any explicit allegations of impropriety, but rather seems be suggesting an inquiry to rule out the existence or appearance of funny business. They do point out that the World Bank:

...is undertaking this putatively independent review because the Board of Directors, representing the Bank’s shareholder governments, mandated this step in 2006 as a result of complaints about improper activities by INT personnel.

You can read more on the Government Accountability Project's concerns via All HeadlineNews or you can read the GAP press release.

-- MDT

Labels: Diligence LLC, Glen Ware, Paul Volker, World Bank

If you've been reading The Daily Caveat for any length of time, then you know we were on this story way back when...

Several months later, now that the dust has settled, BusinessWeek has a great piece, which delves into the international embroglio that saw KPMG file suit against U.S. investigative firm, Diligence, LLC. over charges of bribery and impersonation of law enforcement.

This is simply a must read for anyone interested in the investigative industry...

-- MDT

Labels: Bermuda, Diligence LLC, IPOC, KPMG