Reneging a return offer

Looking for some advice.

Got an offer from FT recruiting. Currently signed with a different company (smaller) through a return offer. I’ve been keeping things on the DL to both parties, but now it seems that the NYC job offer law changed: now it’s verbal offer –> professional background check –> offer letter + signing –> criminal background check. So in other words my original company will get a background check call from my new company. Do you think I should tell my original company that I’m reneging before I sign my new offer or continue to keep it on the DL (i.e. gamble that my connections there won’t find out). Does anyone know about the background check process and how it unfolds?

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