Background Checks

For years I’ve heard high net worth individuals lament about how they wished they could have run background checks on Principals of the Sponsor before investing. From the Principals perspective, it doesn’t make sense to have anywhere from dozens of different people run background checks on them. Yet if the investor receives a background check the Principals have run on themselves, the authenticity is debatable.

Another issue is that most background checks cover basics like criminal convictions, but leave out critical items like civil litigations, bankruptcies, judgements and tax liens. These are the areas that can begin to reveal more about the true character of an individual. Obviously, being convicted of a felony like a violent crime would disqualify them. But when you are investing your hard-earned money with someone, you are typically more concerned with the markers of white-collar crime and civil disputes around past deals.

In order for a Sponsor Firm to be invited to become a member of the Verivest Sponsor Network, all Principals of the firm have background checks ran on them up front and on an annual basis. Below is the list of things that will disqualify a sponsor firm from receiving an invitation and would trigger removal from the network should they occur after membership has been granted.

  • No personal or business bankruptcy petitions for controlling Principal(s) of the Sponsor in the past seven years.
  • No lawsuits involving allegations of fraud or similar misconduct made by investors that have not been resolved in Sponsor’s favor.
  • No regulatory sanctions in the past seven years for any Principal.
  • No felony criminal convictions in past seven years for any Principal.

The results of the background checks are publicly accessible on each Principals profile on the Sponsor profile. The one area that we omit are any family law cases that show up under Civil Litigation. It is important that you take a close look at those results when you are conducting your due diligence on a sponsor to ensure that you are comfortable with any incidents that may have occurred during the 7-year period covered.

Below is an overview of the scope of the background checks we run...

Social Security Number Trace

Our background check provider conducts a Social Security Number Trace on each Principal. This is an internal tool utilized by background check companies that seek out names and addresses associated with a particular social security number. Additional data points generated through this trace can help them to provide you with a more comprehensive background report.

Criminal Offenses

Our provider looks at the federal, state and county levels for any criminal offenses that haveoccurred in the past 7 years.

Civil Litigation

Perform a civil record search out of federal civil courts associated with jurisdictions of current and former residence, as identified by the Social Security Number Trace. Also perform a county upper-level or superior-level civil record search and report civil records in the Principal’s current county of residence, as well as any former counties of residence.

Most background checks will report such information for a maximum of seven years for the filing of the relevant record. Keep in mind that many others do not report dismissed civil records landlord tenant cases, and probate cases whereas ours does.


Our provider performs a 7-year scope bankruptcy record search in federal bankruptcy courtsassociated with jurisdictions of current and former residence as identified by the Social Security Number Trace.

Judgements and Liens

Our provider performs a county upper-level or superior-level judgment and lien search, and report records in the Principal’s current county of residence, as well as any former counties of residence identified by the Social Security Number Trace.

Regulatory Sanctions

  • OFAC (Office of Foreign Asset Control)Global Sanctions Enforcement Check (GSEC)
  • Financial Industry Regulatory Authority (FINRA) Search
  • SEC (U.S. Securities and Exchange Commission)
  • Federal Financial Institutions Examination Council (FFIEC) FFIEC


Work with trusted, verified sponsors.

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Verivest is not registered with the SEC or any similar state agency, is not an investment advisor and does not offer investment advice. Verivest does not (and cannot) recommend any of the sponsors or investment opportunities referenced on this site. All private investments involve risk and uncertainty, including lower than projected returns and a complete risk of loss of invested capital. Investors should conduct thorough due diligence and consult with qualified legal and financial advisors before making any investment decisions.