Kroll Inc.

Kroll is a corporate investigations and risk consulting firm based in

New York City.[2] It was established in 1972.
Kroll

Contents Type Private

History Industry Corporate
Services Investigation
Background screening Risk Consulting
Security consulting Founded 1972
Social media Headquarters New York City,
Other work United States

Historical cases Number of 70

locations
The Heroin Trail case
Key people Noah Gottdiener,
The John Fredriksen oil theft case
Executive
The deal between Brazil and United States
Chairman, Jacob
WTC and Sears Tower security Silverman, Chief
Capital outflows from the Soviet Union and Russia Executive Officer
2014 Moldovan bank fraud scandal Revenue $1 billion (2007) [1]

See also Number of 5,000

employees
Notes
Website www.kroll.com (htt
References
p://www.kroll.com/)
Sources
External links

History
Kroll was founded in 1972 by Jules Kroll as a consultant to corporate purchasing departments.[3]

Kroll began its line of investigative work in the financial sector in the 1980s, when corporations in New
York City approached Kroll to profile investors, suitors and takeover targets, with special attention to any
perceived connections to disreputable organizations, suspicious business practices, integrity issues, or
corporate malfeasance. In the 1990s, Kroll expanded into forensic accounting, background screening, drug
testing, electronic data recovery and market intelligence.[4]

In June 1993, A.I.G. became a minority shareholder.[5]

In 1997, Kroll merged with vehicle armoring company O'Gara-Hess & Eisenhardt. The new entity, The
Kroll-O'Gara Company, became a public company listed on NASDAQ as "KROG."
In August 2001, the O’Gara vehicle armoring businesses were sold to Armor Holdings. The company
name was changed to Kroll Inc. and its ticker symbol became "KROL."

In 2002, Kroll acquired Kelly McCann's firm Crucible. In September 2008, Crucible was acquired by its
management and now operates privately.[6]Also in 2002, Kroll acquired Zolfo Cooper - who was working
on the Enron case at the time - for $153 million.[7]

In July 2004, Kroll was acquired by professional services firm Marsh & McLennan Companies in a $1.9
billion transaction.[8]

In June 2008, Jules Kroll left Kroll, Inc, and in 2010 formed Kroll Bond Rating Agency (KBRA) and K2
Global Consulting with his son Jeremy.[9]

In August 2010, Kroll was acquired by Altegrity, Inc. in an all-cash transaction valued at $1.13 billion.
Altegrity declared bankruptcy in 2015.[10]

Kroll was then bought by Corporate Risk Holdings, LLC.[11]

On October 21, 2016, Carlyle Group-owned LDiscovery acquired Kroll Ontrack for around $410
million,[12] from which time Kroll Ontrack operated as a separate company. In 2018, Kroll Inc. acquired
controversial cybersecurity firm Tiversa.

On June 4, 2018, Duff & Phelps purchased Kroll, Inc.[13][14] In February 2021, Duff & Phelps announced
plans to unify the companies under the Kroll brand.[15] On March 25, 2021, Kroll announced that it had
acquired Redscan, a UK based cyber security company.[16]

Services

Background screening

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.[17]

Security consulting

Kroll offers consulting services through Kroll Security Group, its Security Consulting and Security
Engineering & Design division. These services include threat assessments, vulnerability assessments,
physical security surveys, security disaster planning, policy and procedure development, staffing studies,
etc.

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.[18]

Social media
The company 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).[19]

Other work

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.[20]Both lawsuits were dropped in April 2021.[21]

Kroll was hired in 2018 by Michigan State University during the Larry Nassar case to investigate over 170
sexual assault cases at the university.[22]

Historical cases

The Heroin Trail case

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."[23] 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.[24]

The John Fredriksen oil theft case

Kroll assisted in the trial of Norwegian shipping tycoon, John Fredriksen, at the end of the 1980s.

The deal between Brazil and United States

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
companies independent of the government.[25]

WTC and Sears Tower security

Kroll were responsible for revamping security at the World Trade Center after the 1993 World Trade Center
bombing.[26][27] They also took on responsibility for security at Chicago's Sears Tower following the
September 11, 2001 attacks.[28] Just prior to the September 11 attacks, Kroll Inc., with the guidance of
Jerome Hauer, at the time the Managing director of their Crisis and Consulting Management Group,[11]
hired former FBI special investigator John P. O'Neill,[29] 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.
Capital outflows from the Soviet Union and Russia

In March 1992, the Yeltsin government contracted Kroll Associates to track down and find very large sums
of money that had been removed from the Soviet Union prior to the August 1991 putsch on the Russian
White House.[30][31] In 1992, First Deputy Prime Minister Yegor Timurovich Gaidar said, "Last year saw
large-scale privatization by the nomenklatura, privatization by officials for their own personal benefit."[32]
Gaidar called the Communists and KGB officials criminals and that a "a vigorous search" for the money
trails from state-owned capital had flowed abroad virtually unchecked before the collapse of the Soviet
Union in the summer of 1991.[31] On March 15, 1992, the Russian government froze all capital outflows
from Russia.[31] In April 1992, Kroll Associates began their investigations.[33][a][31] Kroll determined more
than $14 billion in 1991 real dollars had been transferred from Switzerland to New York prior to the
August 1991 putsch.[32] Also, the Communist Party of the former Soviet Union along with other
government agencies, such as the KGB, had transferred more than $40 billion in 2014 real dollars out of
the country.[35][b] The assets of the Vneshekonombank were frozen during the investigation.[32] However,
numerous transactions occurred to bypass the capital flow restrictions often with the British Barclays Bank
in Cyprus acting a money laundering center for public officials from Saint Petersburg and Moscow.[32][c]
According to Valery Makharadze, the government's chief inspector, many joint stock companies were
formed to provide an illegal means for capital outflows from Russia, such as the Leningrad Association of
Joint Ventures[d] and KOLO.[37][32][e] Numerous officials became wealthy Russian oligarchs including
numerous former KGB officials, prominent Communists such as Oleg Belyakov and other former
Communists who headed the party Central Committee department that dealt with the defense industry, as
well as Leonid Kravchenko, who was the former head of the state television and radio company.[32] Jules
Kroll, the head of the Kroll Associates, uncovered hundreds of illicit transactions with massive capital
outflows.[38] This outflow of capital from the Soviet Union and Russia directly contributed to severe
economic conditions in Russia during Boris Yeltsin's second term, leading to its collapse, and resulting in
the age of Vladimir Putin as the President of Russia.[30] Kroll investigators stated that they received very
little support from Russian authorities.[39]

2014 Moldovan bank fraud scandal

On 28 January 2015, the National Bank of Moldova (NBM) 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.[40]

See also
ArmorGroup
Eurasia Group
Le Beck International
Pinkerton

Notes
a. From 1990-1, Joseph Serio, an American, worked with the Soviet Interior Ministry as an
American liaison.[34]
b. Other estimates show that the KGB had removed $50 billion in 1992 real dollars.[31]
c. Vladimir Putin was in charge of the Committee for Foreign Liaison, (Russian: комитет
внешних связей), the Committee for Foreign Economic Relations, or the Committee for
External Relations during this period. Later, he was the advisor to Anatoly Sobchak until
 June 1991 while Sobchak headed the Leningrad City Council from May 1990 to June 1991.
After Sobchak became the Mayor of Saint Petersburg, Putin became Sobchak's first deputy
and later Sobchak's first deputy mayor. By 1990, Sobchak was reviled by the KGB for his
uncovering of numerous irregularities and illegal actions by the KGB and former KGB
officials.[36]
d. The Leningrad Association of Joint Ventures was formed in 1990 and had two joint ventures
with Germany, one with the United States, and one with Finland (FILCO).[37]
e. KOLO removed part of the assets of six defense and space complex firms.[32]

References
1. "Revenue (http://irnews.mmc.com/phoenix.zhtml?c=113872&p=irol-newsArticle&ID=123448
6&highlight=)." Marsh & McLennan Companies, Inc., February 12, 2008. "MMC Reports
Fourth Quarter 2007 Results."
2. "Office Locations (http://www.kroll.com/contact/office-locations/) Archived (https://web.archiv
e.org/web/20110810015803/http://www.kroll.com/contact/office-locations/) 2011-08-10 at the
Wayback Machine." Kroll Inc. Retrieved on 14 August 2011. "Kroll Corporate Headquarters
600 Third Avenue New York, New York 10016 United States"
3. "Background (http://www.newyorker.com/reporting/2009/10/19/091019fa_fact_finnegan)."
The New Yorker, 19 October 2009. "Jules Kroll and the world of corporate intelligence."
4. "Kroll Associates, Inc. Releases Its Initial Report on the APD Training Academy |
AustinTexas.gov" (http://austintexas.gov/blog/kroll-associates-inc-releases-its-initial-report-a
pd-training-academy). austintexas.gov. Retrieved 17 July 2021.
5. Eichenwald, Kurt (29 December 1993). "Prudential and A.I.G. In Dispute" (https://www.nytim
es.com/1993/12/29/business/prudential-and-aig-in-dispute.html?pagewanted=2&src=pm).
New York Times.
6. "Profile: Simon Freakley, CEO of restructuring specialist Kroll" (http://www.accountancyage.
com/aa/feature/1753815/profile-simon-freakley-ceo-restructuring-specialist-kroll).
Accountancy Age. Oct 25, 2007. Retrieved 1 September 2021.
7. Hoare, Michael. "Kroll pays $153m for Enron restructuring experts" (https://www.fnlondon.co
m/articles/kroll-pays-for-enron-restructuring-experts-20020906). www.fnlondon.com.
Retrieved 2021-09-01.
8. Pilla, David. "Marsh acquires Kroll in $1.9 billion cash deal" (http://www.thefreelibrary.com/M
arsh+acquires+Kroll+in+$1.9+billion+cash+deal.-a0118951591), Best's Review, July 1,
2004, accessed January 28, 2011.
9. New York Times profile on Jules Kroll (https://www.nytimes.com/2009/08/29/business/29krol
l.html?ref=julesbkroll)
10. Brickley, Peg (9 February 2015). "Altegrity Files for Chapter 11 Bankruptcy" (https://www.ws
j.com/articles/altegrity-files-for-chapter-11-bankruptcy-1423446150#:~:text=Altegrity%20Inc.,
overwhelming%20majority%20of%20our%20lenders.%E2%80%9D). Wall Street Journal.
Retrieved 7 July 2021.
11. "Profile: Jerome Hauer" (https://people.forbes.com/profile/jerome-m-hauer/41152). Forbes.
12. https://www.krollontrack.com/resources/press/details/64971/ldiscovery-to-acquire-kroll-
ontrack/
13. Banerji, Gunjan (March 13, 2018). "Duff & Phelps to Buy Corporate-Investigations Firm
Kroll" (https://www.wsj.com/articles/duff-phelps-to-buy-corporate-investigations-firm-kroll-152
0973140?mod=WSJ_Markets_LEFTTopStories&tesla=y). The Wall Street Journal. The New
York Times, New York City, United States. Retrieved March 17, 2018.
14. "Duff & Phelps Announces New Business Unit After Completing Kroll Acquisition" (https://w
ww.duffandphelps.com/about-us/news/duff-and-phelps-announces-new-business-unit-after-
completing-kroll-acquisition). Duff & Phelps. June 4, 2018. Retrieved July 7, 2021.
15. Tewari, Saumya (2021-02-25). "Advisory firm Duff & Phelps to be rebranded as Kroll" (http
s://www.livemint.com/companies/news/advisory-firm-duff-phelps-to-be-rebranded-as-kroll-11
614240318982.html). mint. Retrieved 2021-09-28.
16. "Kroll completes Redscan acquisition, expands cyber risk portfolio" (https://securitybrief.asi
a/story/kroll-completes-redscan-acquisition-expands-cyber-risk-portfolio). securitybrief.asia.
Retrieved 2021-07-30.
17. (Press Release) "Identity Theft Restoration (http://www.newswire.ca/en/story/160789/kroll-a
nd-direct-marketing-centre-partner-to-provide-identity-theft-restoration-solutions-across-cana
da)." Canada News Wire, 12 July 2007. "Identity Theft Restoration"
18. "Kroll Associates, Inc. Releases Its Initial Report on the APD Training Academy |
AustinTexas.gov" (http://austintexas.gov/blog/kroll-associates-inc-releases-its-initial-report-a
pd-training-academy). austintexas.gov.
19. Moore, Matthew (31 October 2020). "Corporate detectives Kroll target Instagram stars" (http
s://www.thetimes.co.uk/edition/news/corporate-detectives-kroll-target-instagram-stars-ghmgz
6m7c). The Times. Retrieved 31 October 2020.
20. "A-Plus sues Attorney-General, Kroll & Associates over $1m payment - MyJoyOnline.com"
(https://www.myjoyonline.com/a-plus-sues-attorney-general-kroll-associates-over-1m-payme
nt/). www.myjoyonline.com. Retrieved 2021-10-20.
21. "A Plus, Asare withdraw suits against gov't over removal of Domelevo, US$1million Kroll
Associates cash saga" (https://www.modernghana.com/news/1077927/a-plus-asare-withdra
w-suits-against-govt-over.html). Modern Ghana. Retrieved 2021-10-20.
22. "Here's what MSU got for paying elite firm $6.2 million to investigate 170 sexual assault
cases" (https://www.michiganradio.org/investigative/2019-04-18/heres-what-msu-got-for-pay
ing-elite-firm-6-2-million-to-investigate-170-sexual-assault-cases). Michigan Radio. 2019-
04-18. Retrieved 2021-09-22.
23. Abrams, Floyd (2005). Speaking Freely: Trials of the First Amendment (https://archive.org/de
tails/speakingfreelytr00abra/page/124). Viking Press. pp. 124–137 (https://archive.org/detail
s/speakingfreelytr00abra/page/124). ISBN 0-670-03375-8.
24. Robin Pogrenbin and Felicity Barringer (July 3, 1998). "CNN Retracts Report That U.S.
Used Nerve Gas" (https://query.nytimes.com/gst/fullpage.html?res=9906E6DB173EF930A3
5754C0A96E958260&sec=&spon=&pagewanted=all). The New York Times.
25. EDITORIAL: AEPET está solidária com Duplo Expresso (https://www.aepet.org.br/w3/index.
php/conteudo-geral/item/5285-editorial-aepet-esta-solidaria-com-duplo-expresso)
26. Douglas Frantz (September 1, 1994). "A Midlife Crisis at Kroll Associates" (https://query.nyti
mes.com/gst/fullpage.html?res=9401EEDC1738F932A3575AC0A962958260). The New
York Times.
27. Carey, Carol (1 July 1997). "World Trade Center" (http://securitysolutions.com/mag/security_
world_trade_center/). Access Control and Security Systems Magazine.
28. "About Us > History > Notable Cases" (https://web.archive.org/web/20070106215748/http://k
roll.com/about/history/notable/). kroll.com. Archived from the original (http://www.kroll.com/ab
out/history/notable/) on 2007-01-06. Retrieved 2008-02-15.
29. Kolker, Robert (17 December 2001). "O'Neill Versus Osama" (http://nymag.com/nymetro/new
s/sept11/features/5513/). New York.
30. Dawisha, Karen (2014). Putin's Kleptocracy: Who Owns Russia? (https://books.google.com/
books?isbn=1476795207). Simon & Schuster. p. 18. ISBN 978-1-4767-9519-5.
31. Bohlen, Celestine (March 3, 1992). "U.S. Company to Help Russia Track Billions" (https://w
ww.nytimes.com/1992/03/03/world/us-company-to-help-russia-track-billions.html). The New
York Times. Retrieved April 30, 2018.
32. Sneider, Daniel (March 4, 1992). "Russia Goes After 'Party Gold': Money Communist
officials allegedly shifted out of the country is called crucial to reform" (https://www.csmonitor.
com/1992/0304/04021.html). Christian Science Monitor. Retrieved April 30, 2018.
33. Dawisha p. 19
34. Dawish p. 19
35. Dawisha p. 18
36. Dawisha p. 55, 88
37. Dawisha p. 65
38. Tikhomirov, Vladimir (1997). "Capital Flight from Post-Soviet Russia". Europe-Asia Studies.
49 (4): 592. doi:10.1080/09668139708412462 (https://doi.org/10.1080%2F09668139708412
462).
39. Belton 2020.
40. Kroll Staff (2 April 2015). Project Tenor - Scoping Phase (https://web.archive.org/web/20180
516181611/http://candu.md/files/doc/Kroll_Project%20Tenor_Candu_02.04.15.pdf). Kroll
Inc. Retrieved 6 July 2021.

Sources
Belton, Catherine (23 June 2020). Putin's People: How the KGB Took Back Russia and
Then Took on the West. New York: Farrar, Straus, Giroux. ISBN 978-0374238711.

External links
Official website (http://www.kroll.com)

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