Our research has revealed that the incidence of a court case or some other exception in approximately 16.8% of the cases. Please view the statistical distribution of these findings. Our Year End Analysis Report, shows volume and turn around time statistics on our prior efforts. Members of our service can also view a detailed explanation (pdf) of our Due Diligence report.

Most of the people we research are clean, honest, respectable individuals with unblemished records. Would it surprise you to learn though that an active manager of a fund we evaluated had his securities registration revoked for 5 years, all of his trading privileges suspended, and was fined $150,000 yet is back in business today? His offenses included CHEATING, DEFRAUDING, FALSE STATEMENT OR RECORDS, BUCKETING OR OFFSETTING ORDERS, FICTITIOUS SALES, and REPORTING NON BONA-FIDE PRICES. If you were a hiring manager at an investment firm, would you knowingly hire this person to trade on your customer's accounts today?

Free WatchList
All managers that you request a report on are automatically added to the Check Fund Manager 3 year "Watch List" notification system. Each time the manager is researched for another client, you will be notified of any adverse findings that were not presented in your original report. Due to the extremely high repetition rate on investigations, there is a good chance we will investigate your managers again. See our Multiple Manager Report Analysis.

Ongoing Due Diligence Monitoring
Check Fund Manager's "Ongoing Due Diligence Monitoring" service goes one step further and re-investigates the managers in your investment pool month after month, so that you can continually be made aware of any developments that would possibly cause you to reconsider the risk based on your investment standards.

How can you obtain Check Fund Manager Investigative reports on the managers and funds that you are investing with?

By taking the first step and contacting Check Fund Manager today! We will discuss our investigative process in detail with you and even give you examples to show you why hundreds of institutional investors have chosen Check Fund Manager. Be assured that your own identity with us is safeguarded. We do not contact the fund manager under investigation, nor is he aware that he is being investigated.

New Customers Common Questions & Answers

Does the individual know he or she is being investigated?
No. None of our investigative procedures leave any "footprints" that can be traced back to us or you.

Do you need the signed consent of the individual being investigated?
No. Signed consent is not required.

How can you offer your service so inexpensively?
Our business pricing model spreads the cost of investigations across multiple clients. CheckFundManager will investigate the same individual for multiple clients who then benefit from the cost savings.

Do you recommend we inform the individual manager that he is being investigated?
We strongly recommend that you do NOT inform your managers that a background check is planned or was conducted.

Can we share what your report uncovers with the manager?
Yes, Absolutely, preferably in person.

I am a fund manager, can I see my own report and those of our own managers?
Yes, follow this link to the Check Fund Manager Self Check.

To what extent does Check Fund Manager research media? How is the information presented in the report?

Please follow the link to a detailed description of our Media Summaries. Our documentation methodology highlights what we consider to be red (detrimental), yellow (interesting) or green (non-detrimental) flags.

How do I know if something you report is a red flag, yellow flag, or no flag?

The CFM reports are objective in nature; they present the facts. If you are unsure about something we find, just call us and ask us about it. We have a lot of experience in these matters and can discuss your report over the phone with you.

Here are some considerations and general guidelines to consider when looking for red flags:

First, who do you represent and what are their interests? For example, if you are on the investment team of a private family office, and a manager is making money for you, a drug possession related offense from when he was 20 years old may have little meaning for your employer. However, if you are an operational due diligence manager working for an educational Endowment fund, a manager's record that includes a drug related offense would expose your Endowment to headline risk and should be avoided.

What is the charge, and how does it relate to the business the fund is involved with? For example, a fund that invests in distressed securities would be exposed to stockholder lawsuits on a regular basis. A similar suit for a long/short equity fund, however, would raise a red flag.

Some of the more common red flags we see in order of frequency and would raise caution about include personal bankruptcy, SEC or Rico Act violations, other federal or local civil charges, past charges of fraud, drug or substance abuse charges, direct credentials misrepresentations (did not attend or graduate university as reported, did not work for a prior firm as reported), substance abuse charges, recent criminal actions. A charge seen at CFM that may warrant a pass for example would be underage drinking beer on the beach.

The number of "exceptions" uncovered in a CFM report also would raise red flags. For example, an inflated job title on its own may only be a yellow flag, but combined with grandiose boasting about the person's every accomplishment since birth is of concern.

CFM recommends a systematic approach to evaluating the manager. Starting with his credentials, we are looking for accuracy of the information presented, its relevance to his work, and the pedigree of what it represents. Certainly an MBA from Wharton, Harvard, or Columbia summa cum laude speaks louder than just an undergraduate degree from a lesser regarded university with no distinction.

Accuracy, relevance, and pedigree also apply to past employment. Trading experience with a Wall Street brokerage house along with series 7 and 63 broker/dealer registrations show that the person has experience working under regulatory oversight.

On the litigation side, there are several considerations. Being a creditor or plaintiff in a bankruptcy filing is typically NOT a red flag, nor are the presence of one or more UCC filings.

Civil charges brought by former employers or partners are always of concern and, unfortunately, are rather common. SEC or Rico Act violations brought against the person or his company is serious. Past regulatory violations and the number of violations is of great concern as well. Be careful not to waive off past violations based on the size of the fine issued.

The least severe civil charges that would not raise any flags would include for example, a divorce from 7 years ago, and a personal injury suit related to an automobile accident.

The yellow flag would be raised if there were multiple divorces, especially one that is ongoing at present.

The red flag would be raised if we found business related civil suits as a defendant, including contract disputes, past employment or partner disputes, and of course RICO or SEC Act of 1934 violations.

Red flags would be raised on company named in suits of a similar nature. Not every lawsuit would name the individual. Class action suits should be examined as well. Was the company solely named, or were they named along with dozens of similar firms?

The Civil case complaint and disposition are the two most important documents you can examine when evaluating the relevance of any lawsuit. The CFM litigation summary will not only document the relevance of the said suits, but will often summarize the case complaint AND include the actual complaint for your review.

Here is a list of charges and cases we have seen as applied to the hedge fund managers we have investigated. Which of these breaches would raise a red flag with you?

• Bio - Misrepresented Age
• Bio - Misrepresented Educational Credentials
• Bio - Misrepresented Employment History
• Bio - Misrepresented Position Title or exaggerated duties or accomplishments
• Bio - Grossly misrepresented length of experience on biography
• Bio - Unexplained Gaps in employment history
• Bio - Fudging dates
• Bio - Purposely Leaving Off past employment

• Felony - Driving Under the Influence
• Felony - Child Molestation /Sexual Assault
• Felony - Lewd and lascivious acts upon a person under the age of 14 years old
• Felony - Arson
• Felony - Grand Theft Auto
• Felony - Attempted Murder
• Felony - possession of narcotics
• Felony - resisting arrest
• Felony - Felony Assault

• Misdemeanor - Driving Under the Influence
• Misdemeanor - Possession of drugs
• Misdemeanor - Possession of alcohol
• Misdemeanor - Assault
• Misdemeanor - Domestic Violence
• Misdemeanor - Burglary

• State - Driving Under the Influence
• State - Driving on Suspended License
• State - Reckless Driving
• State - Sanctioned by a State Regulator
• State - tax lien
• State - Civil Judgment
• State - Civil Contract Dispute

• Federal - Sanctioned by the NASD
• Federal - Has 15 year old arbitration no longer on file with the NASD
• Federal - Has disclosure event no longer on file with the NASD
• Federal - SEC Cease and Desist order over a conflict of interest disclosure failure
• Federal - NFA arbitration charging fraud, misrepresentation, breach of fiduciary duty
• Federal - CFTC Reparations case
• Federal - Has multiple Social Security Numbers
• Federal - Chapter 7 Bankruptcy in the US
• Federal - other Bankruptcy as defendant or debtor
• Federal - RICO Act Violation
• Federal - In violation of SEC Act of 1934
• Federal - Breach of Contract dispute
• Federal - Misrepresentation
• Federal - Target of a Class Action suit
• Federal - Civil Suit with former partner/employer
• Federal - as plaintiff, winning a multi-million dollar judgment

• International - Transferring funds to shield assets from International Creditors
• International - Forced to "wind-up" by UK Financial Regulators
• International - Found "insolvent" in the UK
• International - Australian Securities and Futures Commission regulatory action
• International - Ontario Securities Commission regulatory action
• International - Securities Commission of the Bahamas regulatory action
• International - Bahamas Civil Court action

• Local - Changed his name, or is known by another name
• Local - Divorce
• Local - Contract Disputes
• Local - Contractor Disputes
• Local - Property Assessment Disputes

What information is presented in the reports?

Included in the Basic report:

• Executive Overview
• Educational Verification
• Professional credentials Verification
• Property record research
• Corporate & Business affiliations
• NFA/CFTC & NASD Regulators Registrations
• SEC Cases & Proceedings
• U.S. Federal Denied Persons Patriot Act list research
• NASD Disclosure events research
• NFA/CFTC disciplinary actions
• NASD Arbitration back to 1981 & Disciplinary actions back to 1990
• Non-published incidents of disciplinary actions research
• Stock Exchange Disciplinary Decisions back to 1972
• Multiple State Dept. of Corrections Incarceration, Parole, and Probation records
• Multiple State Criminal records
• Multiple County level Criminal record search
• National Bankruptcies, Liens and Judgments
• Federal criminal, civil, appellate (subject and primary company)
• 50 State Civil court records
• 50 State UCC, liens, judgments research
• Name, Social Security Number Validation, Relatives and Address History
• For the United Kingdom: directorships, Ltd company essentials financial report, UK regulatory, UK media, individual insolvencies and county court judgment research UK Financial Services Authority research

Included in the Comprehensive report:

• All of the research from the Basic Report above, plus
• Full Internet research
• Full Media (going back up to 25 years) and news publication research
• Media summaries of findings
• Internet summaries of findings
• Biographical summaries
• Alternative Investment Publications research
• Federal enforcement commissioners non-public research
• State and local enforcement commissioners research
• Placement on our 3 year Watch List

Executive Summary
This is a three-page summary of all of the pertinent information on the person being investigated.

Educational Verification
Check Fund Manager will confirm the educational degrees and dates reported by the candidate with the granting institutions. Other reported credentials, for example, CFA charterholder designations, CPA licenses, or Bar memberships will also be verified.

Regulatory Registrations
This section of the report shows any registration numbers found and any warnings, offenses, or fines reported by these two primary US regulatory agencies, FINRA (formerly the National Association of Securities Dealers) and the National Futures Association. We also examine company registrations on file with the SEC's Investment Advisory bureau and report the registrations found, highlighting any disclosure events. We will also contact our own network of local enforcement commissioners and have them look for non-published or archived incidents of disciplinary actions.

Regulatory Archives
Check Fund Manager also conducts an investigation of the Stock Exchange Disciplinary Decisions going back to 1972, NASD Arbitration back to 1981, and Disciplinary actions back to 1990. It also includes Commodity Futures Trading Commission decisions date back to 1976. This data is not available to the public at large and is available to us through a special arrangement. Information found here might not be available through the standard inquiries to these agencies as the records may have been expunged or erased.

Corporate Records
This section of the report shows incorporation documents containing the applicant's name. The state of incorporation, filing status, and names of other corporate officers are typically included.

Corporate Affiliations
This section of the report shows the names of other corporations to which the manager has an affiliation, both past and present.

Business & Employment records
The next section of the report verifies the identity of the business the person is associated with. It may contain Dunn & Bradstreet listings, corporate registries, and other information on the affiliated company or companies.

Public Business References and SEC Insider Trading
The next section of the report can be very long as it contains references to the person being investigated in news services and business publications. Insider trading documents are found and reported on in this section. We perform a thorough records search for relevant public documents. The report you receive is full of active links to the actual source of the documents we find. This feature distinguishes us from our competition. Where they give you a 'static' report, ours is an 'active' document.

Department of Commerce OFAC Denied Persons Research
We will examine the Office of Foreign Asset Control Federal Denied Persons list to determine if the U.S. Department of Commerce believes the person is associated with money laundering, terrorism, or other anti-US activities. We can also conduct a name search on several other sources, including the United Nations Named Terrorists, Bank of England Sanctions, World Bank Ineligible Firms, Office of the Superintendent of Financial Institutions (OFSI) Canada, the Defense Trade Controls Debarred Parties, and three lists from the US Bureau of Industry and Security, the Unverified Entity List, the Denied Entity List, and the Denied Person List.

National Bankruptcies, Liens and Judgments
This section of the report indicates any National Bankruptcies, Liens or Judgments found for the candidate across the United States.

Federal Criminal, Civil, Appellate
This section of the report indicates any Federal court cases found for the candidate as a plaintiff or defendant. His company may also be searched for records here.

SEC Cases & Proceedings
Federal court cases brought by the Securities and Exchange Commission of the United States are researched and found in this section. Research also includes hearings and documentation including those of the Stock Exchange Enforcement Division as well as Administrative Proceedings. His company may also be searched for records here.

National State/County Criminal, Parole, Probation, Dept. of Corrections
This section of the report indicates any state or county criminal court cases or department of corrections record found for the candidate.

Civil Court Records
This section of the report indicates any civil court cases found for the candidate. This is a national search. We research records from all 50 states. The fund's limited partnership and general partner may also be researched for records as well.

Name, SSN Validation and 25 Year Address History Associated with Subject
This section of the report identifies the person being investigated. His name, date of birth, address history, marital status, and a validation of his social security number is indicated. To protect both you from liability, the manager's actual social security number is not disclosed.

Property Records Associated with Subject
This last section of the report shows property values based upon sale and assessment information.

International Coverage
Check Fund Manager offers extensive international due diligence coverage. Please reference our International Services Page, which outlines our program's advantages for more details. Our International Coverage Map also offers specifics regarding our capabilities in each country.

Report Enhancements &
Check Fund Manager Milestones

• 1999 National Due Diligence capability established
• 1999 Online report ordering and retrieval system goes online
• 2000 Interactive "Live" links added
• 2001 Multiple news/media publications research
• 2001 Multiple state criminal records checks
• 2001 SEC references written filings research
• 2001 Regulatory body research
• 2001 Executive Summary added
• Jan 2002 International network of investigators first established
• Jan 2002 - Corporate research includes checking Federal court records for entries by corporate name.
• March 2002 - Basic searches extended to the UK
• April 2002 - Enhanced Summary section descriptions: Personal narrative written to give executives a quick read and overview.
• April 2002 Federal Denied Persons lists examined
• May 2002 Multiple County Level Felony Misdemeanor searches
• June 2002 - Follow up retrieval and delivery of court documents
• August 2002 Local Civil suit search by primary Business Name search
• September 2002 Local network of enforcement commissioners established
• October 2002 Non-public information research from the SEC
• January 2003 All 50 state civil litigation research
• March 2003 Due Diligence Background checks
• April 2003 "Inventory" of research surpasses 2000 reports
• May 2003 "Fund Manager Basic" report introduced
• June 2003 Low cost UK Civil Courts and UK company report introduced
• July 2003 "Fund Company Basic" report introduced
• Jan 2004 Additional Patriot Act Compliance sources added
• April 2004 "Inventory" of research surpasses 3000 reports
• May 24, 2004 Check Fund Manager featured in Business Week Article entitled "Hotshots with Hidden Rapsheets"
• July 2004 NASD Arbitration back to 1981 & Disciplinary actions back to 1990
• August 2004 Stock Exchange Disciplinary Decisions back to 1972
• October 25, 2004 Check Fund Manager featured in Alternative Universe article entitled "Beyond BrokerCheck"
• December 2004 "Inventory" of research surpasses 3500 reports
• April 2005 Free Check Fund Manager "Watch List" created
• June 2005 Paul Eustace of Philadelphia Alternative Asset Management charged with defrauding clients
• July 2005 “Advanced Due Diligence Techniques” at the Princeton Club
• September 2005 Bayou Fund Collapses
• October 2005 Yale School of Management Investment Management Conference
• October 2005 John Whittier sentenced after committing securities fraund with hedge-fund Wood River Capital
• November 2005 Comprehensive Hong Kong Investigations added
• December 2005 "Inventory" of research surpasses 5500 reports
• January 2006 Surveillance Investigations begin
• February 2006 Comprehensive Swiss Investigations added, all of Europe available
• March 2006 Comprehensive Investigations added to cover Hong Kong, Singapore, Japan, China and Indonesia
• April 2006 Comprehensive Investigations added to cover Africa and the Middle East
• May 2006 Comprehensive Investigations added to cover Russia and Eastern Europe
• June 2006 Comprehensive Investigations added to cover South America
• July 2006 "Inventory" of research surpasses 7000 reports
• September 2006 International Coverage Map completed
• January 2007 "Inventory" of research surpasses 8000 reports
• June 2007 North Carolina Check Fund Manager office added, Connecticut office expanded
• September 2007 Florian Homm/ Absolute Capital Busts
• January 2008 "Inventory" of research surpasses 12,000 reports
• May 2008 Check Fund Manager Operational Due Diligence Weblog created
• June 2008 "Ongoing Due Diligence Monitoring" reporting database introduced
• October 2008 Petters Group $3 billion fraud scheme revealed
• December 2008 Bernie Madoff $30 billion Ponzi scheme is revealed
• January 2009 "Inventory" of research surpasses 15,000 reports
• February 2009 "Auditor" service provider checks introduced
• February 2009 R. Allen Sanford $8 billion fraud revealed
• September 2009 "Deluxe Credentials Verification" service introduced
• October 2009 Galleon Group's Raj Rajaratnam charged
• December 2009 Westgate Capital Management's James Nicholson Ponzi scheme uncovered
• January 2010 "Gold Level" investigation service introduced
• July 2010 International investigations desk staffed in Check Fund Manager's North Carolina office
• December 2010 "Inventory" of research surpasses 18,000 reports
• January 2011 UK On-site investigations formalized
• May 2011 Raj Rajaratnam convicted on fourteen counts of conspiracy and securities fraud
• June 2011 Singapore Check Fund Manager office established
• September 2011 Check Fund Manager Weblog redesigned
• December 2011 "Inventory" of research surpasses 22,000 reports
• April 2012 Check Fund Manager "Letter Style" investigative reporting format introduced
• July 2012 Check Fund Manager is a general sponsor of the Family Office and Private Wealth Forum, Newport, RI
• October 2, 2012 Mr. Simonian presented "Background Checks, Frauds, and Blow-ups" at the Hedge Fund Operational Due Diligence Summit, Manhattan
• October, 2012 The HedgeFund Journal publishes our article entitled "Background Check Indicators Correlate with Frauds and Blow-ups"
• October 19, 2012 Compliance Exchange newsletter publishes "Using Background Checks to Prevent Fraud"
• March 21, 2013 Check Fund Manager publishes its inaugural newsletter, focusing on the topic of International Investigations
• April 1, 2013 Check Fund Manager surpasses 25,000 investigative reports!

Find out more by taking the first step and contacting Check Fund Manager today. Please contact us to get started. We will discuss our investigative process in detail with you and even give you examples to show you why hundreds of institutional investors have chosen Check Fund Manager. We will outline our business practices to you and provide business references.

Unlike other firms, Check Fund Manager performs work exclusively for the alternative investment industry. We do not contact the fund manager under investigation, nor is he aware that he is being investigated. You do not need to break the trust relationship you have established with your manager, as signed consent of the manager under investigation is not required.

Best of all, we can give you an access password so you can read for yourself the names of the thousands of managers and their funds we have investigated. We've probably already investigated many of your managers.

Contact Check Fund Manager today!