| > | | | | Agencies received cases that under domestic |
| Investigative Resources Worldwide | | | | circumstances would have earnedhundreds of dollars. |
| ION maintains information on over 33,000 investigative | | | | When worked internationally, the equivalent cases |
| agencies throughout the world. | | | | earnedthousands. Sensing big money, they sent |
| The majority of these are part time agencies operated | | | | investigators to set up satellite offices inforeign |
| by people with good credentials,skills and abilities. They | | | | locations. Establishing a foreign national in an office is |
| are capable and available but being very small lack | | | | expensive soconsequently, the new offices did not |
| theresources for far reaching marketing. Although they | | | | reduce the high cost of investigations in thecountries |
| might be the best resource for agiven job, they are | | | | they were in. High fees for non domestic investigations |
| difficult for clients to locate when needed. The actual | | | | have discouragedclients from investigating many things |
| ION Network ofinvestigators we know the most about | | | | that should be investigated, and the volume tosupport |
| and to whom we refer 85% of the cases | | | | the remote offices usually failed to develop. With a |
| includesover 500 members in 37 countries. Being full | | | | high failure rate of foreignoutpost offices and clients |
| time is not a criteria for belonging to ION's | | | | reluctance to commit high fees for routine cases, |
| Network but, operating in a professional manner with | | | | investigationfacilities have developed slowly in most |
| integrity is at the top of the list. Thescope of ION's | | | | non western countries. The problem of locatinga |
| Resource Line was expanded from nationwide to | | | | competent local investigator in a remote place for a |
| worldwide in 1996 andcurrently, 10% of the more than | | | | once in a lifetime need had notchanged much until ION |
| 300 referrals made each month are to | | | | expanded the Resource Line to Worldwide. Fees |
| investigatorsoutside the U.S. | | | | forinternational investigations that have traditionally |
| Private investigation does not delegate well. The | | | | been very high are showing signs ofbecoming more |
| majority of investigation agencies aresmall. Many have | | | | competitive. |
| only one or two investigators. There are almost as | | | | Last year, during one of our trips to find investigative |
| many models for aprivate investigation business as | | | | resources in other countries, we metwith several |
| there are full time agencies. The private | | | | investigators in Bangkok, Thailand. The two most |
| investigationagencies around the world have more | | | | notable were goodexamples of what can be found in |
| things unique about them than they do things | | | | many countries. One was located in an expensivehigh |
| incommon. This makes selecting a foreign local | | | | rise building in the city center. The manager was an |
| investigator you have confidence indifficult. | | | | employee of a largeinvestigation/security firm based in |
| With each international referral, we learn more about | | | | another country. He was professional and |
| the available resources in othercountries and how their | | | | appearedwell qualified. That office has since been |
| rules, regulations and customs differ from ours. In | | | | closed. The second agency was located onthe |
| certaincountries, for example, getting something done in | | | | outskirts of Bangkok in a single story building with small, |
| certain months can be an extraproblem because | | | | Asian type cubicles. Theprincipal was local but spoke |
| nearly all the businesses in the country close down for | | | | fluent English. He explained they also do collection |
| the entiremonth and everyone goes on holiday. | | | | workand it was obvious the business was a going |
| Countries with certain religious cultures haveholidays | | | | concern. He expressed reservationsabout doing work |
| that sometimes last for days. Some of what we | | | | for foreign clients without money up front but said he |
| consider public records in the | | | | would work with usto allow us to gain knowledge of |
| U.S. are not only non public in other countries but illegal | | | | each other. We have referred several cases to |
| to obtain without properauthorization. The practice of | | | | thisagency with good results and the fees charged |
| payments to government officials known by | | | | have been reasonable. The same typeof progress is |
| severalnames such as: "grease", baksheesh or la | | | | being made in many other countries. |
| mordida, must be dealt with. The Foreign | | | | Another factor that causes foreign investigations to be |
| Corrupt Practices Act apparently does not prohibit all | | | | difficult and expensive is thedifficulty of establishing |
| "bribe" type payments. Accordingto Phoenix | | | | trust with someone unknown. A foreign investigator |
| international trade attorney, Frank G. Long, there is an | | | | who receivesa request for investigation usually does |
| exception that allowspayments, gifts or promises to be | | | | not respond in the way most clients are used to. |
| made for "facilitating or expediting" any | | | | In the U.S. work is usually commenced on a verbal |
| "routinegovernment action" whether "by a foreign | | | | agreement. Foreign investigatorsgenerally want |
| official, political party or party official." | | | | detailed instructions, in response to which they quote a |
| In the U.S. the cost of investigation ranges from $35.00 | | | | fee for the jobwhich they expect to receive before |
| an hour with no minimum to over | | | | beginning the work. Considering their problemscollecting |
| $100.00 an hour. Strong competitive pressures in the | | | | from a foreign bureaucracy when a check gets "lost in |
| U.S. keep the cost of investigationlow compared to | | | | the mail", their positionis understandable. The |
| other professions. Internationally, the cost of using an | | | | investigation process is non-linear and since it is |
| investigator isgenerally higher than in the U.S. Even in | | | | impossible toknow exactly what any investigation is |
| many countries where wages and earnings arelow by | | | | going to involve until it is completed, flat feesquoted |
| American standards, investigation costs more. | | | | before work starts are usually based on the worst |
| In years past, clients in countries where private | | | | possible scenario. Aninvestigation that, in the U.S. would |
| investigation is common, haveoccasionally needed | | | | cost $2,000 worked by the hour, would probably |
| investigative services in one of the countries where | | | | bequoted at a flat fee of $5,000 or more in most |
| privateinvestigation is not common. They have called | | | | foreign countries. As confidence betweenclients and |
| associates and asked around until theycame up with | | | | the foreign investigative professionals increases, this |
| the name of an investigator in the target country or in | | | | disparity can bereduced. We are already seeing more |
| an adjoining country. | | | | reasonable fees from the countries we refercases to |
| Much like in the U.S, when they tried to make contact | | | | regularly. |
| with local investigators the phonenumbers were | | | | ION's Resource Line is bringing better competition to |
| frequently disconnected. If the needed work was | | | | this overpriced market, but it willtake time and a |
| crucial, price became anon-factor in deciding whether | | | | volume of cases to bring about a system fair for both |
| or not to hire whatever investigator could be found | | | | clients and localinvestigators. We will continue building |
| whowas available to do the work. The client ended up | | | | the database and trust relationships because theonly |
| hiring an investigator from the U.S. oranother location | | | | alternative is for clients to hire agencies that charge |
| almost as remote from the work. The cost of sending | | | | substantially more thancompetent locals charge. When |
| someone fromanother country is very high. It is made | | | | ION is unable to provide the needed resources in |
| even higher because the non local investigatorsusually | | | | aforeign country, the client is so advised and put in |
| don't have the local knowledge or connections to avoid | | | | contact with the best alternative in the |
| lost time. | | | | U.S. or some other country. |