Private investigators can provide crucial evidence needed to uncover and prove fraud or pursue litigation. They are also frequently used to conduct due diligence on counter parties in commercial and financial transactions. However, their use, and the techniques employed by some investigators, increasingly carry reputational, regulatory and legal risks for those instructing them.
In a number of recent cases, private investigators have been accused of posing as relatives to gain access to a private Caribbean island, installing camouflaged cameras on private property and chasing a former bank employee through the streets of Zurich. In another case, an employee of a litigation funder allegedly traded confidential information received in one case for video material of a sexual nature relevant to another case. Members of a wealthy family have also this year been embroiled in a case relating to the bugging of the Ritz hotel in London, which they own. A prominent lawyer in the US was also implicated in spying on journalists who were investigating his client’s alleged sexual misconduct. These incidents have resulted in claims for harassment, trespass, breach of confidence and breaches of data protection legislation, as well as investigations by public prosecutors and regulators.
While some of this activity is clearly illegal, in an industry that remains largely unregulated and fragmented, it is not always clear what methods private investigators are proposing to use and what they are legally able to do. It is, therefore, crucial to understand who will be investigating, what they will do, restrictions under local law and the wider implications of using them in the event that their use is publicised.
