The Complete Idiot''''s Guide to Private Investigating 2nd Edition_9 pdf

Chapter 12 CONDUCTING INVESTIGATIONS IN CHINAJ ACK C HU CHINA’S COMMERCIAL INVESTIGATION HISTORY AND CURRENT TREND China’s commercial investigation work has an extremely glorious history

Producing a Professional Report 153

WRITTEN STATEMENTS

When the inquiry is a complicated matter or the information sourcehas valuable and extensive information critical to substantiating yourconclusions, a written statement may be advantageous Obtaining awritten statement with the questions and answers documents the infor-mation provided by the source and is helpful in preventing contradic-tory information from the source at a later date

A written statement based on questions originated by the tor is the superior method for ensuring a comprehensive and useablestatement In this method, the investigator asks questions of the sourceand reduces the answer to a written format All information necessary

investiga-to substantiate your conclusions can be obtained through proper tioning

ques-Asking an individual to write out a statement leads to many culties, primary of which is the quality of the individual’s handwriting.Statements that cannot be read are of little value Additionally, theaverage witness does not know what information is relevant and needs

diffi-to be included in the statement

This is the individual’s statement and not that of the investigator.Extreme care must be undertaken to ensure that the investigator doesnot influence the information provided by the source The witnesses’terminology should be used even if an additional question must beasked to obtain an understanding of the terminology To the extentpossible, slang should be avoided

When the information source is asked to initial or sign the bottom

of each page of a statement, it impresses upon the source that this ishis or her information and identifies a given set of facts If the sourceprovides conflicting information at a later time, the written statementcan be used to impeach the source at trial

FORMATTING THE REPORT

The value of your report is directly related to the report’s ability topersuade the reader to whom it is directed It is more likely to per-suade the reader if it is easy to read and has a professional appearance.Professional reports should not be written on copy paper or ruledpads The appearance of your report is an indicator of your profes-

sionalism and competence The most complete investigation, poorlyreported, is perceived as a poor and incompetent investigation.

RECOMMENDED FORMATTING

Your report should never arrive on the client’s desk without a letter

of transmittal Professional business correspondence requires that anyreport include a brief letter of transmittal, identifying the recipient andthe sender

The cover page of your report will make a valuable impression onthe client if it has a photograph of company facilities or the client com-pany logo, which individualizes the report

The quality of the paper is important Reports generated on nary copy paper are unacceptable The report should be printed onhigh quality twenty-four-pound paper with a high degree of bright-ness The higher the quality of the paper, the more professional thereport appears

ordi-A twelve-point font with 1.5 line spacing provides an easily readreport The font used should have a professional appearance, such asVerdana, Arial, or Helvetica Never use script, block letters, or otherartistic fonts

Each section of the report should have a topic heading to spond with the various components of the report This facilitates loca-tion of desired information

corre-Lengthy and convoluted sentences confuse the reader Each graph should be short and concise and address only one element ormajor fact of the inquiry Your reputation is based on the quality ofyour report—not the quantity

para-DEADLY ERRORS

The value of your report can be dramatically damaged unless ex treme care is taken to ensure accuracy A substantive error can be verydamaging to your reputation In an assault, if the actions of the perpe-trator are erroneously attributed to the victim, everything else in thereport is suspect

-Producing a Professional Report 155

Poor English or grammar is a reputation killer Improper tion and punctuation are, unfortunately, a common error in manyreports

capitaliza-In the era of modern computers with a Spell-Check feature, there is

no excuse for misspelled words or typographical errors Such errorsclearly demonstrate carelessness and apathy

The best-written report can be easily destroyed by dirt and ous markings on the pages Keep your coffee cup away from yourcomputer!

extrane-THE WELL-WRITTEN REPORT

A well-written report is an example of your work that will be seen

by many people for many different purposes It signals to all the ity of your work The highest quality work with a poorly written reportwill always be viewed as poor quality work

State things clearly and directly You are compensated for the ity of your investigative effort, not for the number of words in yourreport Brevity with completeness and clarity are the keys to a well-written report

qual-Do not speculate or guess You have been tasked to determine factsand provide accurate data Anyone can guess and speculate Whyspend money for an investigation just to have someone else do whatyou can do: guess

Do not use boilerplate language Boilerplate language indicates thatall situations have common facts that can be expressed in terms that

do not differentiate your situation from all others Each situation is ferent and should be described in terms unique to the situation.Avoid absolute words: always and never It is the rare situationwhen absolute words can be used without being subject to question.Before using these words, make sure you can justify their use

dif-Make sure the report is not vague, equivocal, or uncertain Anyreport should be factual and specific in detail If for some reason there

is justification for using vague or uncertain terminology, the reasonsshould be spelled out in your report

Avoid emphatic language, exclamation points, boldface, italics, andcapital letters to emphasize findings or conclusions Unnecessary em-

phasis within a report can indicate your personal opinions, bias, andprejudices when your role as an investigator is to simply collect factu-

al data and let others make their own judgment

Use the active voice: “John hit Joe,” not “Joe was hit by John.” Thisshows assertiveness and that you are comfortable with the informationyou have developed The active voice is strong as opposed to passiveand weak

Use precise (specific, clear-cut) language This is another indicator

of your confidence in the work produced and reduces the probability

of others misunderstanding the facts

Define technical terms and language You can never assume that thereader will be familiar with technical terminology The excessive use ofunfamiliar technical terminology confuses the reader and may lead to anassumption that the writer is attempting to display his technical knowl-edge and belittle the reader—the person who is paying for the report.Avoid evidence of bias Nothing will call your report into questionquicker than evidence of bias You have been retained to report factsand not express your personal opinion through apparent biases inyour report

Use confident language; do not hedge words: it seems, could, ently, or I believe Failure to use confident language may appear to thereader that you question some of the information being presented asfacts

appar-Use objective (unbiased) language and avoid subjective (prejudiced)characterizations You cannot be impartial when you use wording such

as “Joe Smith, the perpetrator” in your report Remember you do notprovide legal advice You provide facts and let the reader arrive attheir own conclusions

Avoid commenting on the credibility of witnesses This is anotherexample of inserting your opinions into the data and not letting thereader evaluate the source of your information In some cases, thiscould lead to legal difficulties for the writer

Ensure internal consistency Make sure that if “Smith shot Jones” atthe beginning of your report, it does not change to “Jones shot Smith”

or “Smith shot Johnson” in later parts of the report This could beembarrassing at the least and devastating to your reputation at theextreme

Producing a Professional Report 157

REPORT NO-NOs

Never use the words legal or legally Remember, you are an tigator and not an attorney, unless you have a law degree, and then becareful

inves-When you annotate a report with the title “draft,” it announces toothers that there are other versions of this report They will be re -viewed for consistency among the reports, and you may be required

to explain the differences

Probable, substantially, and possible are ambiguous words Thesewords may show that you are not sure of the information contained inyour report and should be avoided except in very rare circumstances.Obviously or clearly are patronizing, condescending, and presump-tive words To many it would indicate that you question the reader’sability to recognize obvious facts Insulted clients do not return foradditional insults

“Appears,” “presumably,” “supposedly,” “is said,” and “evidently”imply uncertainty This is another example of letting others know thatyou do not have complete confidence in the information in your re -port If information is questionable, state that fact in clear-cut language.The words he, she, it, and they are confusing and uncertain as toidentity It is better to use proper names, such as Mr Jones or Mrs.Smith to reduce misunderstanding

One person is writing the report, and using the “royal we” suggestsmore than one report writer Using we to attribute success as a combi-nation of individual collaborative efforts is commendable but notacceptable when writing a report that you will be signing

Complete, thorough, meticulous, and exhaustive are words that areself-serving and hold the investigator to extremely high standards.During the review of your report, other ideas and investigative leadsmay be identified, thus bringing your “exhaustive” report into ques-tion

SUMMARY

Your written report is a major indicator of your professionalism andwill greatly influence your reputation among your clients and con-temporaries Your investigative effort will not be considered a compe-

tent investigation if your written report contains numerous spellingand grammatical errors A more disastrous mistake is a mistake in thefacts There are no innocent mistakes that can be overlooked It is awise move to have someone else review your report for factual accu-racy and proper report-writing techniques Your report will be subject

to review and critique by executives, attorneys, judges, and a jury.Perfection must be the acceptable standard

Chapter 12 CONDUCTING INVESTIGATIONS IN CHINA

J ACK C HU

CHINA’S COMMERCIAL INVESTIGATION

HISTORY AND CURRENT TREND

China’s commercial investigation work has an extremely glorious

history In the Sun Tzu’s Art of War it is stated, “Know yourself

and your enemy, hundred battles are hundred victories.” The realmodern commercial investigation work begins in 1978, however, theyear after China realized the reform and open policy The new Chinawas established after 1978; before then, no foreign contact was allowedand China implemented the planned economy All enterprises andbusinesses were controlled by the state and owned by the country Foreconomic trade activity and businessmen, regardless of the manage-ment in the governmental department or in the enterprise unit, thepersonal files were to be unified by the government; in this way thepossibility of false records would be minimized The only changeswould reflect the person’s change of administrative units along withpersonal changes In the case of any commercial dispute or when aninvestigation was needed, the enterprise or individual had to seek sup-port and assistance from the public security department that wasresponsible for the social order and the economic crimes investigation

159

CHINA’S COMMERCIAL INVESTIGATION’S

MARKET DEMAND AND DEVELOPMENT

In 1978, the Chinese government implemented the reform and openpolicy; massive foreign capital and capital from Taiwan and HongKong and private enterprise entered China’s economic domain Themassive economic transactions needed verification and investigationservices

Chinese society, as well as the relationships in the family, has alsobeen influenced by the China Economic Development and the SocietyTransformation, with more and more marriages disintegrating or thirdparties interfering with the family, which leads to the need for maritalbackground and individual privacy aspect investigations

Along with the China Economic Development and the blooming offamous brand names, the Chinese market has turned up with moreand more counterfeit or parallel import product to present; enterpris-

es are in need of the brand protection investigation and strike tion

preven-A lot of economic activities and business operations will need mercial investigation services, but China’s public security departments

com-or other governmental department are undoubtedly not adequate tobear the related commercial investigation and security managementservices The first China Security management company was incorpo-rated on December 18, 1984, in Shekou, Shenzhen, China After that,many security management or private investigation companies emerged

in China A few foreign investigation companies or individuals havealso carried out commercial investigation services in China Followingthe China economic development, a world finance crisis happened;many different enterprises had continuously serious problems due tolack of a security management concept The entire world’s economicfootsteps slowed down; everybody stopped the radical attitude making

a fresh start and recognized the importance of commercial tion The demand for Chinese commercial investigation services isbecoming important Some foreign investors and businessmen are alsothinking of moving their nation’s services into China China’s enter-prises are also more and more concerned with the commercial inves-tigation service

investiga-Conducting Investigations in China 161

CHINA’S COMMERCIAL INVESTIGATION

INDUSTRY STATUS AND RESTRICTION

Since 1978, Hong Kong and China internally have gradually duced some big and small investigation companies So far, possiblyseveral thousand investigation companies and more than ten thousandindividuals are carrying on various commercial investigation services

pro-As of March 2010, the Chinese governmental departments have notissued any commercial investigation licenses No matter, big and smallcompanies are using other commercial licenses to carry on the com-mercial investigation work The Chinese government opened the mar-ket for Security Guarding Service to Chinese enterprises in January

2010 Since the development of Chinese security businesses, the ing of the commercial investigation market is only a matter of time.The opening and strict management of Chinese commercial investi-gation will provide benefits toward a healthy development direction

open-CHINA MARKET NEEDS IN INVESTIGATION SERVICES:

COMPANY BACKGROUND INVESTIGATION

Company background investigations may be divided into severaltypes Some investigations are due to merging or joint venture invest-ment Mainly because of taking over businesses, it will need compre-hensive and thorough verification of the information provided be -cause some enterprises in the process of selling will provide false in -formation to the purchaser Therefore, the investigation goal is to:

• discover as far as possible the real situation on the related prise and to provide fair objective information to the customer

• carry out the checking or investigation, which includes the prise’s industrial and commercial registration status

enter-• determine its management and actual operation situation; thebusiness management team’s specialty level, prestige, and per-sonal integrity; the employees’ quality and energetic condition; aswell as their management level opinions and whether there is hid-den debt or possible questions (for example, after taking over theoperation, is there any possibility for the worker to go on strike or

to slow down operations?)

• discover whether part of the enterprise’s properties are beingtransferred to any individual

• the management level and the concerned local government de partment have very good relationships, which may lead to a bribe

-in order for the enterprise to obta-in some benefits

Before the foreign enterprise buys a Chinese enterprise or ment, a thorough, careful, and responsive examinations will be need-

invest-ed If this is neglected or has not been completed properly, after theinvestment is made, lots of problems may arise Experience has shownthat if a complete investigation has been conducted, fewer problemsoccur after the investment If the investigation has not been done orhas been done improperly, problems may soon arise after the invest-ment This kind of investigation is not merely reading the related arti-cles but also understanding the related company’s situation and moreimportantly being familiar with the management team from a thor-ough and detailed analysis

The company-registered information with the local AdministrationIndustry and Commerce Bureau should include incorporation date,shareholder information and share proportion, the registered capital,legal representative’s situation, management team, and annual returnwith turnover and profit and loss data

Conclude the preceding information with generalized analysis ap praisal; review of the related company’s media link, blog discussion,and so on; and related company’s references and comments fromsame industries

-A site visit to the operation place is necessary to:

• identify if the workplace is rented or purchased, number of em ployees, office condition, main products and services, main cus-tomer and service location, and other information

-• exchange comments with employees

A company background investigation may also involve false mentation verification This type of company background investiga-tion will be difficult Generally, the created false company informationwill be uploaded on the Internet to advertise the business reputation.The infringed party or the interested party to take over the product or

docu-Conducting Investigations in China 163

the investor or any of them would like to conduct an investigation onthe company With this kind of counterfeit company, some of themmay have a business registration with a governmental department,some possibly may not register Moreover, they may not have anyfixed and legitimate operation office in place For this kind of investi-gation, you must be extremely careful and make sure not to alert theinvestigated party Some individuals have experience in creating falseimpressions and have counterdetection abilities Moreover, they em -ploy mostly their relatives or friends Through investigation, you musttarget the individual’s personal registration information, and operationlocation and gather as much detail as possible on the individual’s back-ground information For this kind of investigation, you must discovertheir real situation while collecting the relative evidence that is as de -tailed as possible in order to further report to a governmental depart-ment to consider a raid or seizure You have to also pay attention tothe operator’s collected relevant personal and family information andtheir operation method, location, tools, storage, and logistic arrange-ment of counterfeit samples and their sales channels

PERSONAL BACKGROUND INVESTIGATION

The personal background investigation also has several goals Someclients are prepared to hire a person and would like to carry out a thor-ough verification on the provided information before confirming theappointment This will aim at the individual’s trustworthiness, integri-

ty, and employment history check, including a family backgroundcheck Some individuals may take part in a publicly listed company oract as a shareholder, so their declared information will need to be ver-ified in order to locate any reported derogatory or negative informa-tion Some personal background investigations may involve a litiga-tion court case; the other party may need a thorough backgroundinformation on the plaintiff, especially current activities, personal andfamily assets (e.g property, vehicle, yacht, and debenture) tracing Ofcourse, some personal background investigations may try to locate thedefendant in order to arrange for service delivery of court-writtennotice