Corporate Scams & Private Eyes Who Bust Them

Back in the 1990’s, during the dot-com bubble, strange things were happening with many online companies. They had soaring revenue- particularly from advertising on their websites- and their income stream looked great. Yet somehow, if you dug a little deeper, you would find that the increased revenue was not matched by an increase in overall profits. This is somewhat reminiscent of the Enron debacle in Houston, TX; False reports of false profits with no cold hard cash to show for it.

Investigating Falsified Profits

A Private Investigator Can Help

There have been many instances in many business where either the owners or investors we defrauded due to a lack of knowledge and due diligence. By utilizing the services of a Houston private investigator, the uncovering of frauds can be quick, simple, and complete. Gradoni & Associates is a leading Houston private investigation agency that has gotten to the bottom of many corporate theft schemes. If you need help getting to the truth, and you’re ready to consider discussing your case with a licensed private investigator, call J.J. Gradoni at 281-440-0800.

What was actually going on? Well, after some investigating it was discovered that many companies were buying advertising space from each other. Company A would spend $100 to advertise on company B’s website and in return company B would spend $100 advertising on Company A’s site.

To make things even more complicated, elaborate schemes were set up in which company A would buy advertising from company B who would then buy from company C who would in return spend the same amount on company A. This led to the corporations looking great on paper. Their financial statements showed amazing amounts of revenue and they seemed like the perfect investment opportunities. Of course it was all just a sham.

Faking It Till You Make It Won’t Make It

An Experienced Private Investigator Can Spot a Fraud

The reasons these corporations had to resort to such practices was at once simple and complex. Obviously, they were not making the kind of money they thought they would. But this was compounded by the fact that people had actually invested in them and going bust would cause them an awful lot of problems. The companies were also not necessarily run by very experienced businessmen. Anyone can open a website, sell advertising space and make money online.

Take someone like Mr. Smith. He was young, pretty fresh out of college, and was having a hard time finding a job. His skills were not so in-demand in the job market. He was, however, great at computers. So he decided he would figure out how to make money online. He knew almost nothing about running a business and he needed an income right away. So, instead of bothering to create a solid business plan, find a product to sell and begin the slow process of building an online presence, Mr. Smith chose the easy way out.

Schemes of this nature can be done under a lot of different circumstances with the use of many different techniques. If you feel that your employees are stealing from you, or that you’re being defrauded as an investor, it’s highly advised that you seek out and retain an experienced private investigator as soon as possible. The quicker you get to bottom of the crime, the quicker you can plug the financial leaks and remove those cancerous employees and pursue criminal charges.

He bought a domain, created a nice website and then began looking for people to advertise on his site so he could make money. At one point this was easy- there weren’t so many websites out there, the internet was new and exciting and everyone wanted to advertise there. So Mr. Smith did great. Eventually he hired staff and then went public. He was now making a very nice living. This lasted until everyone else realized that they could do it too. This led to a huge decrease in advertising and Mr. Smith was scrambling for customers while desperately trying to keep up the facade that his business was safe.

He needed revenue and fast. So he struck a deal with Mr. Edwards, who was in a similar situation and they started to exchange payments, so everyone’s companies would look good. But that couldn’t last forever and it didn’t- eventually Mr. Smith was discovered, arrested and charged with fraud. He spent the next few years in a jail cell due to his participation in criminal activity.

How is such fraud discovered? Enter the world of the private investigator. They, along with government investigators, work hard to keep the business world a safe place, so that the regular citizen is able to trust that their money is as safe as can be.