Due Diligence Fee Fraud Investigation

Due diligence fee fraud involves charging clients for due diligence work that is never performed or is performed to a minimal standard. Entities associated with the Corinth Group of Switzerland are the subject of multiple complaints alleging that due diligence fees were collected with no corresponding work product delivered.

Due Diligence in Legitimate Transactions

In a genuine private equity or corporate finance engagement, due diligence is a substantive process: financial analysis, legal review, market assessment, and regulatory compliance checks. The work produces deliverables — reports, financial models, legal opinions — that the client can verify. When due diligence fees are charged by an entity that produces no verifiable work product, the fee itself becomes the product.

Corinth Group and Due Diligence Fees

Complainants describe paying substantial fees to Corinth Group entities under contracts that included due diligence as a stated component. Corinth Investment Holdings AG (CHE-102.223.770) and Corinth Management Services AG (CHE-103.982.016) are among the contracting entities described in complaints [Swiss Commercial Register; complainant accounts]. According to complainants, no due diligence reports or other work products were delivered prior to the firms invoking termination clauses.

The Regulatory Context

Entities claiming to perform financial due diligence are generally expected to hold appropriate regulatory authorisation. In the Corinth Group network, only Corinth Fund Management Ltd (Cyprus) held an AIFM licence from CySEC (AIFM48/56/2013). That licence was revoked in October 2022 [CySEC AIFM register]. No Swiss entity in the network has ever held a FINMA licence. No UK entity held FCA authorisation. The question of whether an unlicensed entity can legitimately charge due diligence fees for financial transactions is central to any regulatory review of the Corinth Group's operations.

Red Flags in Due Diligence Fee Arrangements

Watch for: fees demanded upfront before any work product is shared; no milestone-based payment structure; broad contractual escape clauses that allow the firm to terminate without completing due diligence; the same individual — Jurate Kairiene — serving as sole signatory across all contracting entities, while Martin Walter Model holds no registered position; and a history of complaint reports under previous entity names (Curatio Capital, Arcis Consortium). Demand deliverables at each stage and verify the entity's regulatory status independently.

Key Facts

• Complainants report no due diligence work products delivered despite paying fees
• No Swiss entity in the network has ever held a FINMA licence
• CySEC AIFM licence revoked October 2022 — sole regulated entity in the network
• Sole signatory (Jurate Kairiene) across all 6 Swiss AGs
• Directing mind (Martin Walter Model) holds no registered corporate position

Complaint Reports

People Involved

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