Our client was introduced to a potential business partner in the Philippines, a company that had been incorporated the previous year. Talus Group was retained for due diligence on the company’s shareholders, directors and executives.
Our researchers quickly discovered significant red flags. The government claimed to have probable cause to charge the company’s CEO under an Anti-Graft and Corrupt Practices Act for allegedly selling substandard items to the government while managing a previous company. Well-placed sources, who spoke to us only if assured of anonymity due to fear of reprisals, recommended that the new Manila company should be avoided by companies in the United States and other high-FCPA-compliance countries.