Could bankruptcy, fraud, or insider trading be lurking in your applicant’s past?
A Houston Based Energy Company went bankrupt in after unethical procedures and altered earnings preceded their downfall.
A telecommunications company found fraudulent accounting of more than $3.8 billion after an internal audit was performed. This eventually led to their bankruptcy, and ultimately their demise.
A popular household name was found guilty of insider trading conspiracy because she conveniently sold $230,000 of stock one day before they found out their FDA approval was denied.
Recognize any of these companies? Do the name Enron, WorldCom, ImClone, or Martha Stewart ring a bell? What do they all have in common, you ask? These are all examples of white-collar crimes.
White Collar Crimes
The FBI elegantly sums up a white-collar crime as “lying, cheating, and stealing”. The most well-known examples of white-collar crimes are found in the aforementioned scandals. However, not all white-collar crimes end up in the middle of a media blitz. Often times, it is an ordinary person in a position of power, or with access to financials who commit white collar crimes. Unfortunately, these crimes go unnoticed during the hiring process because the only way to find these crimes is by performing a Federal Criminal Search.
The Federal Criminal Search
Federal crimes cannot be found on a national, county, or state criminal background check. By definition, federal crimes cross state boundaries or are committed on federal property and thus are tried at the highest level of government. These do not include common criminal offenses found in county or state criminal searches. Other Federal cases that can be uncovered in a federal criminal search are illegal sale of firearms, robbery, sexual exploitation of minors, drug trafficking, or immigration violations. There are 94 federal district courts nationwide; with at least one federal district court in each state.
The US Federal Criminal Record Search includes access to all 94 federal courts in the US to uncover violations of federal criminal law. Rather than limiting the search only to jurisdictions where your applicant has resided, our US Federal Criminal researchers review records throughout the United States and individually verify each case before reporting. In doing so, you receive the broadest and most accurate results available.
Using the Federal Criminal Search
Not all pre-employment background screening makes sense to include white collar crimes. We recommend screening potential employees that will have access to finances, C-Suite or Upper Management candidates. Federal Criminal searches should serve as a supplement to a comprehensive background check not a stand-alone product.
As part of any good hiring strategy, partner with a background screening provider you can trust, stay informed, and do not forget to consult legal counsel. Please note: this blog is not all-encompassing and not meant to provide legal advice.
Interested in what a Federal Criminal Search could uncover in your applicants? Contact Us!