Investigative Firm Started by the Krolls Acquires Private Watchdog
K2 Intelligence, the investigative business started by Jules B. Kroll and
his son, Jeremy Kroll, has acquired the corporate intelligence firm Thacher
Associates, a deal highlighting the growing and lucrative business of
internal investigations and corporate monitoring, according to "DealBook."
Thacher Associates, based in New York, is a leader in the niche business of
overseeing large-scale real estate development projects on behalf of
governments and developers to ferret out corruption in the construction
The deal, expected to be announced on Thursday, underscores the prevalence
of private watchdogs (or independent inspectors general) not only in the
building industry but across corporate America. Both government regulators
and large companies are increasingly looking to independent overseers to
monitor businesses for possible wrongdoing.
Kroll is a big name in the global investigations industry. In the 1970s,
Jules Kroll helped pioneer the business of helping corporations improve
their operations by uncovering fraud and other forms of corruption in their
business. Kroll increased its business rapidly, embarking on a series of
acquisitions and diversifying into areas like litigation support and data
recovery. In 2004, Marsh & McLennan purchased Kroll in an all-cash deal
worth $1.9 billion. In 2010, Marsh sold Kroll to the global security firm
Altegrity. In 2009, the year Jules and Jeremy Kroll left Kroll they started
K2, which now employs about 120 people.
Thomas D. Thacher 2d,(known as "Toby"), the chief executive at Thatcher
Associates, said that the combination with K2 will provide a platform to
expand the business to new geographies. Thacher's business developed in the
1990s when then-Gov. Mario Cuomo sought to root out graft in New
Yorkconstruction projects. A former assistant district attorney in
Manhattan, Thacher served as inspector general of the New York City School
Construction Authority before starting his own firm.
High-profile assignments handled by Thacher Associates have included the
World Trade Centersite cleanup, the building of the new Yankee Stadium, and
the construction of the new Bank of America office tower in Midtown
Corporate Intelligence: The Bloodhounds of Capitalism:
Below is a link to a January 5 article in "The Economist" regarding
corporate investigations that may be of interest to investigators.
"There is plenty of work to go round. Assignments linked to mergers and
acquisitions have dwindled along with the number of deals, but other areas
are expanding. One big source of work is the growing complexity of business
regulation. Multinationals can never be sure that some employee, somewhere
has not violated America's Foreign Corrupt Practices Act, or some other
anti-bribery law. Corporate compliance departments often bring gumshoes in
to assist their own investigations...."
ISPLA Director of Government Affairs
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