NYAIR Episode 26
Tips From a Former FBI Agent on Building Trust With Due Diligence
Trust is the cornerstone of investment—but how do sophisticated asset managers really protect against fraud, hidden risk, and reputational damage? In this high-impact NY-AIR episode, former FBI agent and investigative pioneer Kenneth S. Springer outlines actionable best practices, war stories, and critical lessons for family offices, private equity, hedge funds, and institutional investors. Discover what to ask, what to check, and why just scanning LinkedIn isn’t enough to safeguard capital.
Featured Guests
Kenneth S. Springer
Founder & Senior Advisor, Corporate Resolutions Inc. | Certified Fraud Examiner | Former FBI Special Agent
Kenneth S. Springer is a nationally recognized expert in fraud due diligence, background vetting, and investigative risk management. As the founder of Corporate Resolutions Inc. (CRI), he has helped 250+ PE firms, family offices, and institutions vet fund managers, C-suite hires, vendors, and business partners. Kenneth’s unique playbook draws from decades as an FBI agent specializing in white-collar crime, and as co-author of “Digging for Disclosure: Tactics for Protecting Your Firm’s Assets from Swindlers, Scammers and Imposters.” He advises top financial institutions and appears frequently in the media as a trusted authority in governance and fraud prevention.
Key Insights From This Episode
Beyond Box-Ticking: True Due Diligence is Proactive
Effective background checks go far beyond HR or legal minimums—deep dives into lawsuits, regulatory actions, social media, and track record are essential for meaningful risk management.
People Are Often the Biggest Investment Risk
Investors are ultimately betting on managers’ honesty and reputation. Robust background checks uncover patterns—resumé inflation, hidden lawsuits, financial distress, or lifestyle red flags—that can predict future performance and integrity.
Truthfulness Trumps Perfect Records
No one’s history is flawless. Springer’s advice: ask “Is there anything I need to know?” at the outset—those who tell the truth, even about negatives, usually pass the trust test.
Social Media & Modern Tech Change the Game
Today, vetting includes reviewing social media, cross-referencing online records, and, when needed, deploying advanced technology (machine learning, forensics) to surface hidden risks or to verify background claims worldwide.
Fraud and Embezzlement Remain Major Threats
Small and large firms alike face embezzlement, insider fraud, and vendor risk. Kenneth shares statistics: 82% of federal embezzlement occurs in small businesses, and half of incidents are perpetrated by employees of more than five years standing.
Asset Managers Need Continuous, Not One-Time, Screening
Best practice isn’t a one-off check—it’s periodic refreshes, ongoing monitoring, transparent reporting, and empowering tip lines and education for staff. Asset managers should scrutinize everyone with access to money—not just portfolio heads.
Access the Full Conversation
Listen to the full episode and download your custom insights deck. Every due diligence and compliance leader, asset manager, and investor will find practical, actionable strategies to raise their bar for trust and transparency.
Soundbites Worth Saving
“Ask: Is there anything I need to know? If someone’s truthful, you can work with them. If they duck the question, that’s your real red flag.”
— Kenneth S. Springer
“Eighty-two percent of embezzlement occurs at small businesses—don’t count on size or reputation as your shield.”
— Kenneth S. Springer
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