Thursday, May 1, 2014

Not as thorough or as incisive as it could be. William Finnegan saved the best for last.

Note: New Yorker has been more honest than most when it comes to Kroll and cancer scamming sweetie, Tig Notaro(AKA Nick Kroll's "oldest and best comedy friend.) Here's a still evolving companion piece-

The Secret Keeper

Jules Kroll and the world of corporate intelligence.

by October 19, 2009

Subscribers can read the full version of this story by logging into our digital archive. Not a subscriber? Get immediate access to this story, along with a one-month free trial, by subscribing now. Or find out about other ways to read The New Yorker digitally.
ANNALS OF DETECTION about Jules Kroll and corporate intelligence. In 1972, Jules Kroll launched J. Kroll Associates, which eventually became Kroll, Inc., the world’s preëminent detective agency, with three thousand employees, countless subcontractors, and offices in sixty cities in more than thirty-five countries. Last October, Kroll, aged sixty-eight, spoke to a crowd of students and faculty at Cornell, his alma mater. According to the history professor who introduced Kroll that day, Kroll, Inc., specializes in “pursuing crime, particularly financial crime, across international borders.” And so Kroll told stories about recovering the wealth plundered by dictators, among them Ferdinand Marcos, Saddam Hussein, and Jean-Claude (Baby Doc) Duvalier. Kroll’s stories were nearly all morality tales. But breaking up extortion rings, nailing dictators—that’s the Marvel Comics version of Jules Kroll’s career. Kroll really made his living, and his name, on Wall Street. He owed his success to Goldman Sachs and Skadden Arps and a long list of corporations, law firms, investment banks, hedge funds, and brokerage houses. He and his company have been more highly valued for keeping things in the dark than for the occasional, client-approved exposé. Kroll is widely credited with creating an industry where there was none. Call it corporate intelligence. His company offered a range of services— forensic accounting, crisis management, competitor analysis—tooled for a globalized business world, in which industrial espionage, counterfeiting, computer fraud, identity fraud, and sophisticated financial crimes have flourished. “He was legitimatizing private-detective work at a different level,” Joe Rosetti, who was vice-chairman of Kroll until 2001, said. In 2004, Kroll sold his company to Marsh & McLennan, an insurance conglomerate, for nearly two billion dollars in cash. Kroll pocketed around a hundred and seventeen million dollars, and he stayed on to run Kroll, Inc., as a Marsh subsidiary. He retired in 2008, and he’s begun to speak in lectures and interviews about failures of corporate governance and the flaws of standard investment models. What is needed, he says, is “a whole new risk model.” At Kroll, Inc., Jules Kroll hired former prosecutors, accountants, investigative journalists, academics, and specialized researchers. Kroll’s background checks quickly became a standard business tool in the financial industry. Mentions Daniel Karson. Describes Kroll’s investigation into the hanging of the Italian banker Roberto Calvi, in London. Kroll, Inc., does not have the power of subpoena or the power of arrest. But Jules Kroll has hired plenty of graduates of the C.I.A. and other secret services, such as M.I.6 and the Mossad. The company has suffered its share of embarrassments. Mentions Martin A. Siegel, who was harassed by Kroll operatives so that he wouldn’t testify against an arbitrageur at Goldman Sachs. In 2004, federal police raided the firm’s São Paulo offices and arrested five employees. Texas billionaire R. Allen Stanford, who was accused of operating a multibillion-dollar Ponzi scheme and indicted last June, was a longtime Kroll client. With its international intelligence networks and their sometimes unnerving abilities, Kroll began to be described as “a private C.I.A.” The terrorist attacks of September 11th generated a grim surge in business for Kroll, as corporations rushed to improve their security plans. This summer, Jules Kroll launched K2 Global Consultants, a risk-consulting and investigations firm, with his eldest son, Jeremy.
read the full text...
read the full text...
Subscribers have access to the current issue and the complete archive of The New Yorker, back to 1925. Subscribers also can access the current issue on tablets and phones via our digital edition. If you subscribe to the magazine, register now to get access. If you don't, subscribe now.
To search for New Yorker cartoons and covers, please visit our store.
Post a Comment

Stef Willen's Disaster, Literally.

In the history of publishing, there is a fascinating history of memoirs that get pulled from publication, after an eagle eyed reader or rea...