International Investigations - Comparing Investigations of All Kinds in Various Countries

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Published in the P.I. Magazine May/June 2001


Ancestry

An investigator is bestowed with the task to find heirs of a deceased who apparently has no spouse, children or siblings. The request may come from an official source, such as a lower court, but also from a lawyer representing an insurance company, the landlord where the deceased lived just to name a few possibilities. But there are also official publications where heirs are sought and if no heirs are found in a certain period of time the state becomes the heir. There are investigators who specialize exactly in that sphere to find heirs where nobody else has been successful; they are the so-called heir hunters.

In the USA the minimum information needed is of course the name of the person, his or her date of birth, her maiden name, and above all the social security number which is the most important data, because in most instances it contains the state where the deceased was born.

How quickly a case is closed successfully, taking it that there are indeed heirs, depends on the information available at the very beginning as well as how quickly do the sources to be contacted cooperate.

Maybe there is an ID card, a passport found among the belongings left behind, perhaps also letters, bank accounts, social security files, marriage or divorce certificate.

In Germany the Registrar's office, part of the civic register, is the best first place to contact. In Germany every locality of a certain size has its Registrar's office. There is no longer need to go there personally, but when the investigator has proved his justified interest in writing, most offices will cooperate and not hide behind the Data Protection Act.

There the records of births, marriages, divorces are kept. They help to build a "family tree", at least showing who were his parents, with whom he was married, divorced. Depending whether the deceased had lived all his life in the locality where he finally died, or most likely has moved around, then the records are not complete at the Registrar's office at the last locality, but there are hopefully cross references.

The next step is to get in touch with the Registrar's offices where the parents had lived, thus getting their places of birth and death, hopefully also then records of possible further children. And the same procedure starts again.

If the deceased was married or even divorced, the appertaining Registrar's offices where the marriage and divorce were recorded are contacted in the same manner as described above.

The Registrars may help for free, or for a small fee, partly demanded in advance.

If in the deceased's belongings other information is found, such as letters, the addressees or senders are contacted by phone, if they are recorded in the appertaining telephone directory, CD-ROM or telephone directory online otherwise by mail.

If the letters were written long ago, it is advisable to write registered mail or even returned receipt, then the investigator gets the letter back if the addressee is unknown or moved away, hopefully with the new address.

The deceased's bank is contacted likewise. They may hide behind the Data Protection Act, only prepared to answer when a court order is presented to them, but it is definitely an angle to be tried.

The (former) landlord, neighbors may also be of good source of help. The landlord may have still the former address of the deceased, cited at the time of his signing the rental agreement, neighbors may have known some visitors or remember cars of visitors.

If the deceased was the owner of the premises, land records may help to find a former address as a new starting point for further investigation.

Telephone directories may be of great help, especially the old ones, but they are mostly only available at big libraries. Regional telephone companies do not keep copies in most instances.

The writer of this essay found persons by thumbing through columns and columns of the telephone directory of Bamberg, but in another instance the international telephone directory service supplied the telephone number of a couple in Tirol/Austria, heirs to about US $250,000. So with two telephone calls, one to the telephone information service and one to the couple to confirm their identity and the case was successfully closed. (NOTE: To obtain the money they had of course to identify themselves by certified documents.)

Depending of the age of the deceased, if died at a younger age, Armed Forces records (if the Forces cooperate and not hide behind the DPA), records of a (former) university and college, schools may be of help too.

The best is to start with the vital records (in the USA the social security number), telephone directories, then there is a good chance to find heirs or other persons, such as witnesses, neighbors, other documents may also help.

Background investigations on individuals

An important part of this investigation is similar to ancestry search: Needed information is date of birth, marital status, address of the applicant, (former) employers, schools, colleges, universities, landlords, neighbors, friends are to be contacted, if the client permits it.

After the investigator has been satisfied of the client's justified need and an authorization by the applicant has been submitted together with any information available, mainly from the applicant's CV, the financial issue needs to be decided. This depends on the number of sources and how far back the investigation is to be carried out, which in turn depends on the prospective position the applicant is to take, the investigator gets then in touch with the appertaining Registrar's office in order to get information about the date of birth and the marital status of the applicant even if only to have them verified.

It may well be that the client forbids that (former) employers, schools, colleges, universities, landlords, neighbors, friends are to be contacted, then the investigator must adhere to that, otherwise he may greatly jeopardize the client.

In the USA, the search by means of the social security number credit headers, i.e. a summarized information from databases is obtained, it used to be much more, but here the DPA shows its impact. The information usually contains the date of birth, marital status, current and past addresses, present and employers, bank connections and the so-called credit history: where the applicant has banking and credit cards accounts, the manner of payment (prompt, past due), loans, credits sums and status, at times also evaluation of the applicant's standing.

The databases are for the most part accessible online, but most likely for a fee and password guarded.

Important searches are police records, court litigation, civic register, land records, at times available online, at times legwork or at least written applications are needed, depending on the states or also whether the investigator has proved his creditability.

If permitted by the client another mosaic in the investigation is to contact (former) employers. The aim of that part of the investigation is to find out to what a degree did the applicant adhere to the truth when submitting his CV. Especially the Americans are very much afraid of forgery. The opinion goes that 5% of the documents submitted have been forged.

Sometimes the applicant believes that he has submitted a truthful re- port, but personnel department officials have a special "language" to express an opinion which for the applicant and outsiders appear to be good, but in reality this "coded" opinion shows a different picture.

The investigator may contact the (former) employers by phone, but it is preferable in most time to do it in writing together with the (copy of the) applicant's authorization, since the employers like to have something in writing in their files because of liability reasons.

When the investigator contacts the (former) employers, they have another opportunity to express their opinion about the applicant. However, quite a number hide behind the DPA and albeit the written application would not cooperate, some prefer to given an unofficial opinion by phone. Some just send a copy of the reference supplied at the time to the applicant when he left the company.

If the investigator is able to develop the former superior's name, there is a better chance to get detailed information.

Experience has shown that the higher the applicant's esteem was at the time with the company the more cooperative the former employer is, since they want to pave the applicant's way and help him still to the best of their ability, often then stating that they much regretted him leaving and that they would have liked to keep him.

The longer the time lapse passed is, the less likely it is to get information from the employer: files are destroyed after 7 to 10 years from the time the applicant left the job, companies amalgamate and the files are transferred to places where not all sources contacted know their whereabouts.

Such information is not available online, often footwork is needed.

A further aspect of the investigation is headed by "EDUCATION", which means re-checking the applicant's statement concerning his former education: schools, college, university.

Here again the information is much more easily available in the USA than in other countries. In Germany such entities hide more often behind the DPA than (former) employers. In most cases if at all they need a written application by the investigator as well as the (copy of the) applicant's authorization.

It is easier to get the cooperation of the sources if the applicant's tutor is known, it is the same human angle as with (former) employers.

Also like in the case of employers' check the more time has passed since the applicant took his courses, the more difficult it is to glean the information for the simple reason since the records are no longer available: were destroyed because of space reasons at least.

Credit reports on companies

The American bank, EXIM Bank [1] (Export Import Bank) describes their requirements for a credit report on a company. These requirements stand for other credit granters as well as export guarantee insurance granters.

I. What a Credit Report Should Include.

Credit Reporting Agency reports must be reliable and up to date. A report should state both the date of the report and the date the information was gathered. If the source of the report is not the creator of the report the origin of the report should be stated. The following should be included in such reports:

1.Name, Address and History of the Subject

Where the business name and address have been registered should be verified, together with registration numbers and dates. previous names and addresses should also be indicated, particularly in the case of unregistered trade names ("DBA or doing business as") used by sole proprietors. The history of a business, the education, experience and reputation of the principals and the quality of management are important. Any recent changes should be indicated, together with an appraisal of likely trends in the future.

2.Subject's Bankers

If this information is available, it is useful to know the name, address, contact, telephone and fax numbers of the branch or branches where the buyer has accounts. The length of the relationship, type of accounts, size of secured and unsecured lines of credit, and opinion of the bank should be given.

3.Ownership, Legal Status and Date of Establishment

In the case of partnerships, private and public companies, the names of the major partners or owners (shareholders), and directors should be listed. Connections of the partners or owners with other businesses should be indicated with its nature. The original date of establishment and dates of any changes in legal status should be listed.

4.Description of Activity

Some subjects may be engaged in a number of different activities (manufacturing, distributing, wholesaling, etc.). When applicable, the whole range should be described. Names of foreign and domestic suppliers for whom the subject acts as agent, representative or distributor should be listed.

Trade references should be listed with their experience. Principal lines of goods and services should be listed. Past, present and future business trends should be assessed.

5.Subject's Standing in the Industry

The importance of the standing of the subject in its industry should be indicated together with the range (type) of clients (buyers) it serves. The number of employees should be included.

6.Commercial Morality and Payment Record

An opinion on both of these items should be given and supported by evidence based on knowledge and collection experience.

7.Inventory

A description and valuation of inventory, along with method of valuation should be included.

8.Financial Condition

A subject's financial condition is clearly an essential element for appraising creditworthiness and every effort should be made to provide past and current records (with dates) of assets, liabilities, equity, turnover, income, expenses and profitability of the subject.

A. It is appreciated that in the case of sole proprietorships and certain types of companies, figures are not required to be officially published. In such cases, and when detailed figures are not released, estimates should be provided and clearly described as such. If financial statements cannot be supplied, the reasons should be given.

B. In the case of companies legally required to publish annual accounts, or of firms who voluntarily supply agencies with financial information, it is helpful to have balance sheets and income statements made available for consecutive years with dates. It should be indicated if the statements are audited or not and who the auditors are. Every effort should be made to include the most current interim statements to reveal the current situation.

The following items are of particular importance:
  • Capital (both registered and paid-up figures are essential),
  • Reserves,
  • Current and Long Term Liabilities (secured or unsecured),
  • Current and Long Term Assets (pledged and unpledged),
  • Net Worth and Liquidity Position,
  • Property Owned and other Fixed Assets (with details of debentures, charges or mortgages if applicable), and
  • Profitability.


9.Public Sector Entities

In the case of subjects in the public sector, where commercial risk is inapplicable, political risk insurance generally covers the risk of failure or refusal to pay. If credit reporting agencies are able to provide information on public sector entities, the reports should, in addition to the information required on private sector subjects as appropriate, include answers to the following questions:

  1. Is the subject an agency of the Central Government?
  2. If not, is the subject a publicly-owned entity? The precise status should be described with appropriate references to enabling laws or decrees which may apply. Indicate the degree of autonomy.
  3. What budgetary or other provision enables the subject to engage in commercial contracts?
  4. Is the subject itself, or some other entity, responsible for payment?
  5. What is the source of the subject's funds?
  6. Has the subject a satisfactory record in performance of contracts.
  7. Can the subject be made judicially or administratively insolvent?
  8. In the event of a default, are normal legal processes feasible against the subject?

    10.Opinions and Recommendations.

    If no opinion is expressed on creditworthiness, the report should contain sufficient facts and figures to enable the insurer to make its own assessment. If an opinion is offered, it should be supported by reasoned argument and the basis of the opinion explained (e.g., bank advice, trading or debt collection experience). If secured terms are recommended, the worth and financial standing of the proposed guarantors should be indicated. If a credit reporting agency usually provides an opinion but, in a particular case, refrains from comment, the significance of this omission should be indicated.

    The EXIM Bank describes what they would like to have for their decision, indicating that they are well aware of the restrictions to obtain information in many areas or countries or of sources by using the expression if the information is available.

    Much information is available online in the USA:

    1. a site for the credit worthiness of a business is available [2] which is now free of charge.
    2. Databases supplied by the three leading companies in this field: Dun & Bradstreet, Experian, Choicepoint to be accessed for a fee and with a password.


    These companies collect their information from the appertaining commercial registers, in many locations already available online, as in England at companies' house, in Germany at part, not in China [3] nor in Turkey [4], Israel, [5], Switzerland [6] for instance. (NOTE: I hope to get more answers from other colleagues, too.

    The commercial registers supply the correct name of the company, the judicial form, date of establishment, under what number listed, the registered and paid in capital, the shareholders and their amount of shares, the management, and if the company is a public company listed at the stock exchange, also the board of management, the company's secretary.

    The line of business is another important information available.

    In England the information of the place of living of the management and that of the secretary are listed, in Germany the secretary is not listed, since there is not such a position, but in most instances the date of birth of the manager, marital status, sometimes even whether he has offspring are available.

    Depending on the size of the company its balance information is also lodged at the commercial register.

    Whether the company still exists, bankruptcy proceedings started or has been struck off the register, all information supplied by the commercial register. In Germany, if a bankruptcy proceeding has been started, the judicial files are recorded and the attorney responsible for the proceeding.

    This skeleton of information is augmented by sending the appertaining company a questionnaire to get more detailed information to the above listed, but also to learn about the number of employees, bank relations, references, which include names of suppliers and at times also those of clients, the size of the premises, what kind of premises (office, warehouse, store premises) whether owned or rented, if owned, the value, if rented, monthly rental.

    If the company is a producer or trader, the raw materials, semi- manufactured and fully manufactured materials and goods are of great importance, but of course also whether they are already paid or not.

    These information may at times be obtained through a telephone interview too.

    It is astonishing at times how much is available about a company on the Internet.

    Telephone directories, in hard cover, CD-ROMs or online help to obtain the hopefully current telephone, fax numbers, email addresses. But even online directories are often up to a year outdated.

    These resources may also locate the landlord, if the company's premises are rented. If cooperative, the landlord reports as to how long the subject company has been the tenant, whether rents are paid promptly, whether there are any problems with the company.

    Neighbors are also developed by these means, then interviewed as to their experience with the subject company.

    The references supplied by the subject company are contacted either by phone or writing, in China [3] or Turkey [4], but also in Russia and quite a number of countries the investigator has to personally visit the company to collect the needed information, but also to view the premises to see that the company is of some size, has the needed premises required to carry out the business and not just one office room at hand.

    Bank information if at all supplied is not available online because of banking secrecy. In most countries in the world to collect information without the account holder's permission is illegal, especially detailed information. At times from bank to bank one may get a short answer such as Œno problems known'.

    But information from banks must be taken with a pinch of salt, they still will tell that they know of no problem, although in reality they may have supplied sizable loans to the company, but it is in their interest that the company is able to continue to do business, then the bank is more likely to get its loan repaid.

    Other sources which may be of use for the investigator, such as land register, available in the USA to be consulted publicly as well as in Switzerland [6], but in Switzerland for instance the investigator has to go there to check the records. In Germany in very few instances one has access to them, also legwork in this case, if someone wants to buy the premise, inherited the premises or with the permission of the owner when a loan has been applied for. But the records are not available for just a credit check.

    It is important for the investigator to keep in touch with his client for several reasons, either by phone or by intermediate written reports. One is that the client sees that the investigator is not idle but really is doing his job properly, but also to compare notes with the client. It may well be at times that information in the client's file differs considerably from the information collected by the investigator. So the reason for these different data must be looked into in more detail. There may be a simple reason for that: the information in the possession of the client may be purely out of date.

    Another reason for the client and the investigator to keep in touch is to view the information in the possession of the client and reevaluate it in view of the collected information during the investigation. The information may then get a different sense.

    Before closing the investigation and the compiling the final report, the investigator should review the collected information, go through every item, see how it fits with the total picture.

    It may well be that for instance one reference has reported about prompt payments, another of high outstanding figures. It may well be that the sources have refused to go into detail and the investigator is not able to explain the discrepancy.

    Then the professional investigator is not afraid to state that the investigated company enjoys a good reputation with one reference in contrast to the other where high debts have been recorded.

    Clients requesting a credit report on a company often wish also the investigator's opinion as to whether a certain credit sum may be granted.

    Then reviewing the data collected, the economic and political situation of the country where the company under review is located, the investigator may state that a business connection may be concluded and the requested sum be granted, the requested sum is too high and should be granted in several portions or against firm credit conditions, rarely will an investigator state that a business connection is not advisable.

    1. www.exim.gov
    2. http://www.businesscreditusa.com as supplied by Michele Yontef, CMI, USA, http://www.Ma-Bell.com
    3. Yang Hai of the company Steele Business Investigation Center, http://www.china-investigation.com
    4. Cornelius Sandburg, M.A. of company Gordius Ltd. (more information forbidden due to security, danger reasons
    5. Eitan Newman of E.M. T. Investigations, http://www.emtinvestigations.com
    6. Paul Kenzelmann, http://www.w-s-a.com