UBIC's Lit i View XAMINER Digital Forensic Tool Anchors New Service To Help Speed Japan's Independent Investigative Committees

Tuesday, June 3, 2014 - 11:02

UBIC, Inc. (Nasdaq:UBIC), a leading provider of international litigation support and  big-data analysis services, announced today that it launched a high-level analysis support solutions service for ad-hoc, independent committees in Japan charged with investigating corporate fraud and other cases of inappropriate practices. The new service uses the Lit i View(R) XAMINER digital forensic tool to increase the speed and accuracy of investigations and reduce their dependence on high-cost manpower. For example, independent committees set up to investigate a fraud case would engage a digital forensic service vendor to identify and collect potential evidence materials from the corporation's electronic data stores and put a team of lawyers to work examining the selected data in more detail. This process requires a great deal of time, people and cost.

UBIC's new service can substantially reduce the time, labor and cost of a committee's investigation by simplifying and speeding up this process,  providing the committee access to an artificial intelligence (AI)-based evidence analysis system, via the cloud, that can perform very quickly and accurately functions including personal network analysis and Asian-language keyword search.

Growing Importance Of Independent Committees

In Japan, when a private or public organization or government office is confronted with an allegation of fraud or other serious infraction, the organization typically does not investigate itself, but an independent committee of outside experts is created to investigate the allegation and make recommendations based on its findings. Japan's investigative committees wield both the power and latitude to carry out investigations and conduct discovery broadly within named organizations. A total of 127 listed companies established independent committees in 132 cases over a five-year period January 2007 through December 2011, according to survey results released by Teikoku Data Bank Ltd., Tokyo.

Typical of cases handled by independent committees are fictitious transactions, account manipulation, inflated profits and insider trading. And the role of independent committees is expanding beyond corporate investigations to cover probes of fraud and other inappropriate practices in a wide variety of fields including the world of sports.

Useful To Companies And Investigative Committees

From Jan. 2005 through Feb. 2014, UBIC provided support for more than 790 internal investigations. From this experience, UBIC learned that a major issue in the effectiveness of these investigations was the time, manpower and cost involved in analyzing very large volumes of electronic data to identify and select evidentiary materials with teams of lawyers.

Companies entangled in such investigations for a prolonged period of time often suffer serious consequences, including a decrease in enterprise value and market capitalization, possible delisting from a stock exchange, or a decrease in morale among employees, among other possibilities.