Due Diligence Investigations


Due diligence is defined by the Business Dictionary as a “Measure of prudence, responsibility, and diligence that is expected from, and ordinarily exercised by, a reasonable and prudent person under the circumstances”. In business it is the duty of a firm’s directors and officers to act prudently in evaluating associated risks in all transactions or the potential risks involved in an investment. Due diligence may even be exercised in one’s personal life, with more and more people trying to learn as much as they can about persons they may become involved with romantically. In short, it is a process by which risk can be minimized through proper research and investigation.

The extent and focus of a due diligence investigation may also be mandated by state and federal law. In New York State, for example, the New York State Banking Department requires, at a minimum, that background investigations include:

  • Comprehensive Credit History
  • Civil Court and Bankruptcy Court Records for the past ten years.
  • Criminal Records to Include Felonies, Misdemeanors and Violations (Note: Records from federal, state and local courts must be included. Records must be search in the counties where the subject worked and resided as well as the counties contiguous to those counties).
  • Education Records
  • Employment History
  • Personal and professional references
  • Media History
  • Regulatory History
  • Department of Motor Vehicle Records
  • All Judgments and Liens Filed with the County Clerk within the Past Ten Years (Counties of work, residence and contiguous counties).
  • Licenses Granted by any Governmental Agency
  • Listing of all Credit Relations

Please contact us for assistance with your concerns about due diligence investigations.