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Private eyes hope to benefit from international business

Private investigators, glorified in television series like "Magnum PI'' have a tougher time in real life where they are perceived as snoops, wandering around the bushes looking for evidence of unfaithfulness in divorce proceedings. But in Bermuda, a new breed of PIs hope to prosper by battling high level coprorate espionage.

Local private investigator Mr. Alistair Brown would only agree to an interview on the condition that his photograph was not printed.

His firm, Bermuda Research Services, is most definitely a low key operation.

In fact, he has chosen to locate in inconspicuous basement offices in Church Street.

The former Bermuda Policeman would rather fewer locals recognised him. "There are no high profile characteristics to my business,'' said Mr. Brown. "That is the last thing I would want. I don't run a security firm, employing uniformed guards or operate security vans for cash in transit,'' he said.

"I concentrate solely on the investigative side,'' he said.

The reputation of private detectives is still plagued by misconceptions, he said regretfully.

"I have been told at cocktail parties that I earn my living in a despicable manner,'' he said.

This scorn is usually a reaction to his investigation of matrimonial cases.

But that only accounts for 20 percent of his total workload, said Mr. Brown.

He intends to capitalise on the growth of Bermuda's international business sector and specialise in international corporate litigation.

"The growth of Bermuda as an international corporate centre means there will be an increase in international litigation, which produces a need for investigators to find information for attorneys to use in the court room,'' he said.

Some of Bermuda's attorneys are more inclined to use the services of investigators than others, he said, but 60 percent of his business is generated by attorney clients.

Ms Robin Mayor, partner at leading law firm Conyers, Dill and Pearman said she could not recall the firm ever hiring a private detective for investigative work: "Clients have occasionally instructed them independently,' she said.

"Private detectives are relatively new in Bermuda.'' Bermuda Research Services has been in operation since 1989. Mr. Brown left the Police Force to set up the company and now employs one other investigator.

Competitors include security companies like Island Wide Security, set up by Mr. Bill Black in 1969, and Bermuda Investigative Services, a division of Safeguard Security Services, set up in 1980 by Mr. Paul Field.

Mr. Black, another former Policeman and president of Island Wide Security and Bermuda Central Station, said investigations only account for 10 percent of his operations, but his firm can provide insurance claim investigation, missing persons enquiries, international process serving, pre-employment screening and executive protection services.

Two years ago, Mr. Field, president of Safeguard Security Services, set up a fraud prevention company Commercial Defence Associates in a joint venture with chartered accountants Kempe & Whittle.

The partnership is involved in local and overseas corporate investigations. A key investigative probe demanded in Bermuda is a background check service, used especially for potential applicants to new jobs involving positions of trust.

This pre-employment screening is particularly popular in Bermuda according to Mr. Brown. "The international companies have made it clear they do not want to be associated with anything that is tainted. They want to find out any flaw in character.

"Large international companies use headhunters to find personnel. I will then investigate the potential employees and provide a report, answering many questions including why the employee left their previous job, and if they are financially stable,'' said Mr. Brown.

"I have uncovered cases where future employees are smoke and mirrors'', he said.

Another important task for an investigator is tracing assets. "In a small island community like Bermuda there is the problem of individuals running up credit lines and then skipping the island.

"I trace individual and then identifies the assets,'' he said. Bermuda Research Services has worked with certain Bermuda Government departments, but will not breach client confidence by revealing company details.

Neither will he speculate on how many offices in Bermuda are fitted with electronic surveillance equipment.

"I don't often have to sweep bugged offices,'' said Mr. Brown. "Most business do not think they say anything that sensitive, but any international company that has an important board meeting could discover that information has found its way to the other side.

"A client of mine realised that people he opposed could not have achieved a legal manoeuvre that took the wind out of his sails without some prior knowledge.

"I would not bug offices because it is illegal,'' he said. "Businesses, particularly the insurance market, must decide whether proprietary financial information they have is sensitive enough to merit employing a professional to ensure their offices are not bugged by electronic devices.

"Corporate espionage is one of fastest developing industries,'' he said.

"And there is evidence of it here.'' In response to Bermuda's burgeoning international reputation, Mr. Brown is setting up an international network.

"I am writing to the most sophisticated foreign agencies, that have an emphasis on international corporate litigation, intelligence research, asset investigation and risk management, to point out growth in Bermuda market and reveal the potential,'' he said.

Mr. Bill Black.