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Nikola’s downfall shows why the investing world needs more private investigators

Published Sep 29 2020 at 7:46 AM GMT
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  • ts and 10-Ks that are sort of red flags" TM: Yes, one particular section of SEC filings that we love to look at is the related-party transactions section, in which companies are required to disclose when they have links to relatives of officers that might be considered inappropriate and improper.
  • Companies that have a lot of those are often worth looking at because it might suggest a willingness to push the envelope a little bit when it comes to what would otherwise be considered inappropriate relationships.
  • And what’s fascinating about that is that whether you’re a private detective or an investigative journalist or a labor researcher or an NGO, when you’re looking at a public company’s related-party transactions, the disclosures of those are fascinating because if you can find others that were not disclosed, then you have a serious angle in terms of investigating further.
  • FC: How would you find those if they’re not disclosed' TM: The typical way of approaching that is to build a comprehensive profile of the subject.
  • Let’s say you’re looking at the CEO of a publicly traded company and you find out that she has five other companies that are linked to her somehow, and all five of them are in the business of marketing and public relations.




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  • Published Sep 29, 2020 7:46 AM GMT