Case study · Due Diligence
The Family Name at Work
A trusted insider of a promoter family drew a salary from the group while growing his own business in the same trade, on the strength of the family's standing.
- Undisclosed conflict of interest
- Proxy, front & related-party vendors
- Promoter & counterparty integrity
- insider's business growth
- 2.5–3×insider's business growth
- formal affiliations mapped
- 5formal affiliations mapped
- of income reconstructed
- 4 yrsof income reconstructed
- workstreams combined outside-in
- 4workstreams combined outside-in
01The situation
The family's name was building someone else's business.
A long-serving partner in a family group's trading entity drew a salary from the group, held prominent industry roles on its standing, and ran his own trading business in the same commodities. The family wanted to know how far the relationship had been used.
How it came to us
The promoter family was concerned that a long-serving partner was using the family's name and relationships for personal gain.
02How it worked
- 01The insider held a formal role in a group entity and drew a salary from another.
- 02In parallel he ran a proprietorship, later converted to an LLP, in the same trade.
- 03The family's standing gave him prominence in industry roles and access to the group's ecosystem.
- 04His own business grew about 2.5 to 3 times in four years, while a group entity made periodic payments to his spouse.
Swipe sideways to see the whole diagram.
- The organisation
- Insiders involved
- Outside parties
- Where the money ended up
How it was hidden
Formal affiliations limited to a handful of entities on record, with the business run through his own vehicle.
03The challenge
Map the insider's real business footprint and finances from the outside, without access to his records, and separate legitimate enterprise from misuse of the family's goodwill.
What made it hard
- Outside-in data only
- Multiple related entities
- Distinguishing enterprise from misuse
Red flags that were there to see
- Insider running a business in the same trade
- Payments from a group entity to a spouse
- Insider's industry prominence resting on the group's standing
04Our approach
- Workstream 01
Desktop intelligence
Corporate registry and public-record mapping of all affiliations.
- Workstream 02
Market intelligence
Discreet enquiries on his trading relationships.
- Workstream 03
Financial background
Sources and application of personal income over four years.
- Workstream 04
Asset and lifestyle review
Property and lifestyle against income.
The breakthrough
Reconstructing four years of income showed his own business, not his salary, was the centre of his financial life, growing rapidly alongside his role in the family group.
05What we found & did
- He ran a parallel business in the same trade as the family group.
- The family's standing and relationships helped that business grow.
- A group entity made periodic payments to his spouse.
06The impact
The family received a clear picture of the relationship and its exposure, as a basis for decisions on the insider's role and related-party oversight.
- insider's business growth
- 2.5–3×insider's business growth
- formal affiliations mapped
- 5formal affiliations mapped
- of income reconstructed
- 4 yrsof income reconstructed
- workstreams combined outside-in
- 4workstreams combined outside-in
07Lessons for your business
The controls that would have stopped this, or caught it sooner:
- Require family-business insiders to declare businesses in the same trade.
- Review payments from group entities to insiders' relatives.
- Track how the group's standing is used in industry roles.
~₹5 Crundue benefit quantified
The CEO's Three Vendors
A subsidiary CEO routed a rural retail rollout through vendors fronted by his own associates. The money trail led back to him.
- Procurement reconstruction
- Corporate and statutory records
- Ground intelligence
- Funds-flow tracing
US$4.7M+diversion traced to the founder
Zero Skin in the Game
An investor funded a road-construction contractor. Within months, the founder's own contribution had quietly gone to zero and the diversion had begun.
- Records digitisation
- Funds-flow reconstruction
- Personal wealth analysis
- Corporate and property records
~1Memails and documents reviewed
The Fortune That Wasn't There
Shareholders suspected their managing director of hiding a fortune. On the data available, the money trail did not support that suspicion, and it surfaced employee frauds instead.
- Digital forensics
- Source and application of funds
- Related-party mapping
- Market intelligence
Client names and identifying details are withheld to protect confidentiality. Specific references and client experiences can be shared on request, with the client’s consent.
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