Kroll Inc.

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Kroll
IndustryCorporate investigation
Risk consulting
Founded1972; 50 years ago (1972)
FounderJules Kroll
Headquarters,
United States
Number of locations
72
Area served
Worldwide
Key people
OwnerKroll, LLC
Number of employees
5,000
Websitewww.kroll.com

Kroll is an American corporate investigation and risk consulting firm established in 1972 and based in New York City.[1] In 2018, Kroll was acquired by Duff & Phelps.[2] In 2021, Duff & Phelps decided to rebrand itself as Kroll, a process it completed in 2022.[3]

History[edit]

Kroll was founded in 1972 by Jules Kroll as a consultancy servicing corporate purchasing departments.[4]

Kroll began its line of work in financial sector investigations in the 1980s when corporations approached Kroll to profile investors, suitors, and takeover targets.[5]

In the 1990s, Kroll expanded into forensic accounting, background screening, drug testing, electronic data recovery, and market intelligence.[5]

In 1997, Kroll merged with vehicle armoring company O'Gara-Hess & Eisenhardt to form Kroll-O'Gara.[6][7] The company became public and was listed on the NASDAQ as "KROG".[citation needed] In August 2001, the O’Gara vehicle armoring businesses were sold to Armor Holdings,[8] and the company's name was changed to Kroll Inc.[7][9] and its ticker symbol to "KROL".[citation needed]

In 2002, Kroll acquired restructuring firm Zolfo Cooper for $153 million. At the time, Zolfo Cooper was working on the Enron case.[10]

In July 2004, Kroll was acquired by professional services firm Marsh & McLennan Companies in a $1.9-billion transaction.[11]

In June 2008, Jules Kroll left Kroll Inc.[12]

In August 2010, Kroll was acquired by Altegrity, Inc. in an all-cash transaction valued at $1.13 billion. Altegrity declared bankruptcy in 2015,[13] and Kroll was later bought by Corporate Risk Holdings, LLC.[14]

On October 21, 2016, Carlyle Group-owned LDiscovery purchased Kroll Ontrack for around $410 million[15] and operated it as a separate company.[citation needed] In 2018, Kroll acquired cybersecurity firm Tiversa.[16]

On June 4, 2018, Duff & Phelps purchased Kroll Inc.[2] In February 2021, Duff & Phelps announced plans to unify the companies under the Kroll brand, which completed in February 2022.[17][18]

On March 25, 2021, Kroll announced that it had acquired Redscan, a UK based cyber security company.[19] In March 2022, Kroll acquired Canadian risk intelligence software company Resolver.[20]

Services[edit]

Background screening[edit]

Kroll's background screening division provides screening services for areas such as employment, supplier selection, investment placement and institutional admissions. Kroll's Background Screening division also includes the Kroll Fraud Solutions unit, which specializes in identity theft protection and identity restoration services.[21]

Security consulting[edit]

Kroll offers consulting services through Kroll Security Group, its Security Consulting and Security Engineering & Design division.

In 2020, Kroll was hired by the Austin Police Department to evaluate the department's policies and protocols for racism and discrimination. They presented their findings to the Austin city council in March 2021.[22]

Social media[edit]

Kroll's business and investigations practice provides background checks on Instagram influencers, using publicly-accessible online information to prevent them being 'cancelled' for problematic or potentially disreputable behaviour (e.g. tweets which includes offensive language or content).[23][24]

Other work[edit]

An agreement between the government of Ghana and Kroll for the firm to retrieve assets and investigate wrongdoings by previous appointments was subject to two lawsuits in 2020, challenging the constitutionality of the agreement.[25] Both lawsuits were dropped in April 2021.[26]

Kroll was hired in 2018 by Michigan State University during the Larry Nassar case to investigate over 170 sexual assault cases at the university.[27]

Historical cases[edit]

The Heroin Trail case[edit]

In 1987, in the prominent First Amendment case over The Heroin Trail stories in New York Newsday, attorney Floyd Abrams enlisted Kroll's help to find an eyewitness: "But was it conceivable that we could come up with an eyewitness who could be of help? I called Jules Kroll, the CEO of Kroll Associates, the nation's most acclaimed investigative firm, to ask him if he could inquire, through the extensive range of former law enforcement officials employed by him, whether Karaduman was known to be a drug trafficker in Istanbul."[28] Two weeks into the trial Kroll produced Faraculah Arras, who was prepared to testify he was involved in one of Karaduman's drug deals. "I was stunned," recalled Abrams.

Abrams used Kroll again in 1998 to investigate claims by CNN's Newsstand documentary that sarin nerve gas had been used in Vietnam in 1970 as part of Operation Tailwind.[29]

The John Fredriksen oil theft case[edit]

Kroll assisted in the trial of Norwegian shipping tycoon John Fredriksen at the end of the 1980s.[citation needed]

Brazilian privatization[edit]

Fernando Henrique Cardoso, Daniel Dantas, the company in question, André Esteves, Roberto Mangabeira Unger and Dario Messer signed a schedule agreement to privatize Brazilian state-owned enterprises.[30]

WTC and Sears Tower security[edit]

Kroll were responsible for revamping security at the World Trade Center after the 1993 World Trade Center bombing.[31][32] They also took on responsibility for security at Chicago's Sears Tower following the September 11, 2001 attacks.[33] Just prior to the September 11 attacks, Kroll Inc., under the guidance of Jerome Hauer, the managing director of their Crisis and Consulting Management Group,[14] hired former FBI special investigator John P. O'Neill,[34] who specialized in the Al-Qaeda network held responsible for the 1993 bombing, to head the security at the WTC complex. O'Neill died in the attacks.[35]

Capital outflows from the Soviet Union and Russia[edit]

In March 1992, the Yeltsin government contracted Kroll to track down large sums of money removed from the Soviet Union prior to the 1991 Soviet coup d'état attempt.[36][37] On March 15, 1992, following accusations from First Deputy Prime Minister Yegor Timurovich Gaidar of "large-scale privatization by the nomenklatura", the Russian government froze all capital outflows from Russia, and eventually, the assets of the Vneshekonombank.[37][38]

Despite investigators stating they received very little support from Russian authorities, Kroll determined more than $14 billion (in 1991 real dollars) had been transferred from Switzerland to New York prior to the putsch (mostly in joint-stock companies, such as the Leningrad Association of Joint Ventures),[38][39] and that another $40 billion plus (in 2014 dollars) had been transferred out of Russia by the Communist Party and other government agencies of the former Soviet Union, through hundreds of illicit transactions.[40] This outflow of capital contributed to severe economic conditions in Russia during Boris Yeltsin’s second term.[36]

2014 Moldovan bank fraud scandal[edit]

On 28 January 2015, the National Bank of Moldova hired Kroll to present its findings from Project Tenor involving Ilan Shor's Shor Holding and the 2014 Moldovan bank fraud scandal which was part of the Russian Laundromat.[41]

References[edit]

  1. ^ Scanlon, Scott (12 October 2021). "Miller Black Associates Recruits Chief People Officer for Kroll Business Services". Hunt Scanlon Media. Retrieved 8 November 2021.
  2. ^ a b Banerji, Gunjan (March 13, 2018). "Duff & Phelps to Buy Corporate-Investigations Firm Kroll". The Wall Street Journal. The New York Times, New York City, United States. Retrieved March 17, 2018.
  3. ^ "Kroll completes brand unification". consulting.us. 23 February 2022. Retrieved 2022-04-07.
  4. ^ Finnegan, William (19 October 2009). "The Secret Keeper: Jules Kroll and the world of corporate intelligence". The New Yorker. Archived from the original on 5 September 2012. Retrieved 20 April 2022.
  5. ^ a b "Kroll Associates, Inc. Releases Its Initial Report on the APD Training Academy | AustinTexas.gov". austintexas.gov. Retrieved 17 July 2021.
  6. ^ Miller, James P. (16 November 1999). "Kroll-O'Gara Management Agrees to Buy Out Firm". Wall Street Journal. Archived from the original on 20 April 2022. Retrieved 20 April 2022.
  7. ^ a b "COMPANY NEWS; KROLL-O'GARA TO SELL ARMORED VEHICLE BUSINESS". New York Times. 24 April 2001. Archived from the original on 27 May 2015. Retrieved 20 April 2022.
  8. ^ "O'Gara Training & Services: Our History". O'Gara Training & Services (ogaratraining.com). 20 April 2022. Archived from the original on 20 April 2022. Retrieved 20 April 2022.
  9. ^ Meier 2021, p. 46.
  10. ^ Hoare, Michael. "Kroll pays $153m for Enron restructuring experts". www.fnlondon.com. Retrieved 2021-09-01.
  11. ^ Pilla, David. "Marsh acquires Kroll in $1.9 billion cash deal", Best's Review, July 1, 2004, accessed January 28, 2011.
  12. ^ New York Times profile on Jules Kroll
  13. ^ Brickley, Peg (9 February 2015). "Altegrity Files for Chapter 11 Bankruptcy". Wall Street Journal. Retrieved 7 July 2021.
  14. ^ a b "Profile: Jerome Hauer". Forbes. Archived from the original on May 22, 2009.
  15. ^ "Press Releases - Stay up to Date with Ontrack".
  16. ^ Khatchadourian, Raffi (25 October 2019). "A Cybersecurity Firm's Sharp Rise and Stunning Collapse". The New Yorker. Retrieved 4 November 2021.
  17. ^ "Kroll completes brand unification". Consulting.us. 23 February 2022. Retrieved 31 May 2022.
  18. ^ Tewari, Saumya (2021-02-25). "Advisory firm Duff & Phelps to be rebranded as Kroll". mint. Retrieved 2021-09-28.
  19. ^ "Kroll completes Redscan acquisition, expands cyber risk portfolio". securitybrief.asia. Retrieved 2021-07-30.
  20. ^ Kobialka, Dan (31 March 2022). "Kroll Acquires Risk Intelligence Technology Provider Resolver". MSSP Alert. Retrieved 31 May 2022.
  21. ^ (Press Release) "Identity Theft Restoration." Canada News Wire, 12 July 2007. "Identity Theft Restoration"
  22. ^ "Kroll Associates, Inc. Releases Its Initial Report on the APD Training Academy | AustinTexas.gov". austintexas.gov.
  23. ^ Moore, Matthew (31 October 2020). "Corporate detectives Kroll target Instagram stars". The Times. Retrieved 31 October 2020.
  24. ^ Ebadi, Sherine (12 May 2021). "Protecting the Enterprise from Social Media Threats". CFO. Retrieved 4 November 2021.
  25. ^ "A-Plus sues Attorney-General, Kroll & Associates over $1m payment - MyJoyOnline.com". www.myjoyonline.com. Retrieved 2021-10-20.
  26. ^ "A Plus, Asare withdraw suits against gov't over removal of Domelevo, US$1million Kroll Associates cash saga". Modern Ghana. Retrieved 2021-10-20.
  27. ^ "Here's what MSU got for paying elite firm $6.2 million to investigate 170 sexual assault cases". Michigan Radio. 2019-04-18. Retrieved 2021-09-22.
  28. ^ Abrams, Floyd (2005). Speaking Freely: Trials of the First Amendment. Viking Press. pp. 124–137. ISBN 0-670-03375-8.
  29. ^ Robin Pogrenbin and Felicity Barringer (July 3, 1998). "CNN Retracts Report That U.S. Used Nerve Gas". The New York Times.
  30. ^ EDITORIAL: AEPET está solidária com Duplo Expresso
  31. ^ Douglas Frantz (September 1, 1994). "A Midlife Crisis at Kroll Associates". The New York Times.
  32. ^ Carey, Carol (1 July 1997). "World Trade Center". Access Control and Security Systems Magazine.
  33. ^ "About Us > History > Notable Cases". kroll.com. Archived from the original on 2007-01-06. Retrieved 2008-02-15.
  34. ^ Kolker, Robert (17 December 2001). "O'Neill Versus Osama". New York.
  35. ^ "John O'Neill's FBI Jacket and Passport Embody His Enduring Fight Against Terrorism | National September 11 Memorial & Museum".
  36. ^ a b Dawisha, Karen (2014). Putin's Kleptocracy: Who Owns Russia?. Simon & Schuster. p. 18. ISBN 978-1-4767-9519-5.
  37. ^ a b Bohlen, Celestine (March 3, 1992). "U.S. Company to Help Russia Track Billions". The New York Times. Retrieved April 30, 2018.
  38. ^ a b Sneider, Daniel (March 4, 1992). "Russia Goes After 'Party Gold': Money Communist officials allegedly shifted out of the country is called crucial to reform". Christian Science Monitor. Retrieved April 30, 2018.
  39. ^ Belton 2020, pp. 60–61, 513.
  40. ^ Tikhomirov, Vladimir (1997). "Capital Flight from Post-Soviet Russia". Europe-Asia Studies. 49 (4): 592. doi:10.1080/09668139708412462.
  41. ^ Kroll Staff (2 April 2015). Project Tenor - Scoping Phase. Kroll Inc. Retrieved 6 July 2021.

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