Professional Documents
Culture Documents
In the financial industry, all potential clients of services for collateral, loans, funding
and project financing are concerned about avoiding fraudulent scams. Online
searches as amateur “due diligence” on any established firm that has been in
business for years will uncover all kinds of “complaints” and “warnings” accusing the
firm of all possible scary alleged wrongdoing. Such claims are almost always false
and highly illegal, and are in fact themselves an attempt to criminally defraud or
extort money from the targeted firm being defamed.
It is a general doctrine of law in all jurisdictions that making false public statements
against a person or firm is illegal. Commonly known as “slander” (when verbal) or
“libel” (when written), false statements to damage someone’s reputation is called
“defamation”. Defamation is defined by various laws in clear and uniform terms:
“Provably false statements of verifiable fact, that serve to undermine or damage
someone’s reputation.” It is no defence to phrase a false statement as an “opinion”,
one’s “own experience”, or as some alleged “consumer complaint”. As long as the
comments contain some false statements of fact that could be verified as false and
could or should be known to be false, then it is defamation, and it is illegal.
All defamation is illegal, and law suits against false defamers are highly successful
and collect substantial damages from the wrongdoers. Written defamation (which
applies to the Internet) is punished harshly, and damages usually do not need to be
proven, as they are assumed by law due to the written exposure to the public.
Defamation falsely accusing of fraud or professional misconduct is even more
severely punished by “treble damages” and “punitive damages”, which can be
enormous amounts of money far beyond any expected real damages to the victim.
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Defamers know that their false statements are illegal, and that false defamation to
enforce unlawful demands is criminal. This is why they make great efforts to remain
anonymous, to avoid both civil and criminal liability. Experience shows that once an
anonymous online defamer can be identified and their identity exposed by a reply in
that forum, they stop, disappear, or begin modifying their statements to back-track on
their lies.
Real and professional “due diligence”, as properly conducted by ethical law firms and
effective economic security firms, consists of collection of informational, legal and
registration documents of the firm under consideration such as its licenses, and
objective review and verification of those documents. This is the only real way to
establish whether a firm has the capabilities that it claims, and whether its
capabilities and knowledge base demonstrate its experience or preparedness to
achieve desired results.