TorchStone’s client thought they had found the perfect candidate for their open board of directors position. In fact, the retained executive search firm highly recommended this individual, had completed a “thorough background check,” and confirmed that there were “no red flags.”
In addition to conducting a more exhaustive check for adverse records, TorchStone examined the candidate’s track record as a director at three publicly-traded companies. Our investigation revealed that the candidate, a CPA, had served on the audit committees of two of those companies, and that during his tenure both had been forced to restate earnings due to major accounting irregularities. We further discovered a more than 10 year-old lawsuit during which the candidate’s expert witness testimony was thoroughly discredited on cross-examination. In fact, the judge in the proceedings characterized the candidate’s testimony as “not credible and misleading” in the written opinion and order. The client restarted their search with more professional assistance.
