This Asset Search News Roundup reports on Michael and Linda Mastro’s supposed concealment of two diamond rings- The October 25, 2012 indictment of Michael Mastro and his wife Linda, alleges violations of money laundering and bankruptcy fraud laws. Among other things, the indictment accuses the Mastros of fraudulently hiding portable valuable commodities, such as a… Continue Reading
Category Archives: Bankruptcy
Subscribe to Bankruptcy RSS FeedProtecting Assets By Utilizing A Nominee Incorporation Service
Posted in Asset Search/Fraud Investigation, Bankruptcy, Divorce & Child Support, Money LaunderingUltra-high net worth divorcing spouses, kleptocrats, bankruptcy debtors, judgment debtors, etc., could easily conceal their beneficially owned assets by utilizing nominee incorporation services (“NIS”). Pages 63-64 of The 2007 National Money Laundering Strategy, in essence divulge that some NIS promote the creation of non-transparent bank accounts and shell companies. Page 64 expressly says: “The FBI believes that… Continue Reading
Seattle’s Ubiquitous Asset Protection Lawyer, Ms. Mary Simon
Posted in Asset Search/Fraud Investigation, Bankruptcy, White-Collar Crime GenerallyThe U.S. Senate Permanent Subcommittee on Investigations August 1, 2006 report on offshore tax haven abuses explains that assets can be hidden with the assistance of “lawyers, brokers, bankers, offshore service providers, and others” offering offshore asset protection. Seattle lawyer Mary Simon appears to have especially provided offshore asset protection services that featured Belizean trusts. As revealed by… Continue Reading
Using Pretrial Discovery In Cases With Foreign Trusts
Posted in Asset Search/Fraud Investigation, Bankruptcy, Divorce & Child SupportIt is no surprise that foreign trusts can easily be used as elements to fraudulently protect or conceal beneficially owned assets. In some jurisdictions a trust may however, be considered void if the trust was “self-settled” (i.e. the grantor and beneficiary were found to be one and the same). Trust veils might also be pierced… Continue Reading
Collecting Evidence In An Offshore Asset Search
Posted in Asset Search/Fraud Investigation, Bankruptcy, Divorce & Child Support, Swiss BanksThe pretrial discovery phase of a divorce, bankruptcy or other legal matter is often the best chance one has to collect evidence of any assets hidden offshore. The attached letter rogatory* submitted to the Swiss court, was included in one divorcing wife’s pretrial effort to gather such evidence. At the time of pretrial discovery in… Continue Reading
Asset Search News Roundup: November 26, 2011
Posted in Asset Search News, Bankruptcy, Tax FraudInvestigating assets by issuing subpoenas and a letter rogatory– It is well-known that subpoenas may play a critically important role in an asset investigation. To try to locate bankruptcy estate assets for example, the trustee in Michael Mastro’s bankruptcy case subpoenaed credit card records from Amercian Express and a credit file from Equifax. An earlier… Continue Reading
Red Flags In One Of Washington State’s Largest Bankruptcies
Posted in Asset Search/Fraud Investigation, BankruptcyIn one of the largest bankruptcies in Washington state history, Chapter 7 trustee James F. Rigby Jr. is searching for assets that belong to Michael R. Mastro’s bankruptcy estate. The bankruptcy estate assets could include everything from life insurance polices to expensive jewelry and other portable valuable commodities. During the March 24, 2010 deposition of… Continue Reading
Mr. Mastro’s Bankruptcy Estate & His Self-Settled Trusts
Posted in Asset Search/Fraud Investigation, BankruptcyAlthough real estate developer Michael R. Mastro tried to protect assets by forming three trusts, the Court in Mr. Mastro’s bankruptcy case still found these trusts to be void. According to the Court’s May 28, 2010 order, the trusts were void as to Mr. Mastro’s creditors because the trusts were “self-settled” (i.e. created and funded… Continue Reading
Asset Search News Roundup: August 18, 2011
Posted in Asset Search News, Bankruptcy, Divorce & Child Support, Money LaunderingToday’s “Asset Search News Roundup” deals with the beneficial ownership of assets. Although it was published as early as October 14, 2007, “Asset Search Indicia For Divorce, Debt Collection & Bankruptcy” is still relevant today. This is true because it reveals how beneficial owners sometimes conceal assets by using tools ranging from sham trusts to… Continue Reading
Following The Money Trails From Marital Assets To Nazi-Looted Art
Posted in Asset Search/Fraud Investigation, Bankruptcy, Divorce & Child Support, Holocaust-Era Assets, Money Laundering, Tax FraudNazi-looted art, bankruptcy estate assets, marital assets and almost anything else can conceivably be secretly transferred by common methods. Just a few of the common methods include the use of intermediaries (i.e. nominees), forgeries, portable valuable commodities and multiple jurisdictions to fraudulently transfer or hide assets. By studying these kinds of methods, the continuing legal education… Continue Reading
Mr. Hecker’s 10 Year Sentence For Hiding Assets & Fraud
Posted in Asset Search/Fraud Investigation, Bankruptcy, Divorce & Child Support, White-Collar Crime GenerallyAccording to his wife’s September 28, 2009 affidavit, Dennis Hecker had stopped financially supporting her and was hiding assets. Dennis Hecker’s wife therefore asked Judge Jay M. Quam of Hennepin County Minnesota, to impute income to Mr. Hecker and to issue an interim order of spousal maintenance and child support. As more fully set forth… Continue Reading
Peter Madoff & His Competing Claimants
Posted in Asset Search/Fraud Investigation, Bankruptcy, Securities Fraud"Forced Collections Against A Fraudster Like Madoff" & "Competing Over Mr. Allen Stanford’s Assets" described the problem of competing claimants trying to recover from a limited pool of funds. This same problem has been encountered by the plaintiffs in The Lautenberg Foundation v. Madoff, 09-Civ-00816, whose lawsuit I mentioned at "Suing Peter Madoff For Bernard… Continue Reading
Asset Search News Roundup: April 21, 2010
Posted in Asset Search News, Bankruptcy, Financial Institutions, Swiss Banks, Tax FraudThis "Asset Search News Roundup" concentrates on an alleged $45 million dollar tax fraud and the conviction of Mr. Dennis Hecker’s girlfriend, Christi Michele Rowan: An April 15th press release explained that property developers Mauricio Cohen Assor and his son, Leon Cohen-Levy are accused of hiding $45 million from the IRS by using nominees to… Continue Reading
Trustee Rigby’s Latest Lawsuit Over Mastro Estate Assets
Posted in Asset Search/Fraud Investigation, BankruptcyMy November 1, 2009 article highlighted the Chapter 7 bankruptcy case of real estate developer Michael R. Mastro. At “Trustee in Mastro bankruptcy goes after four new targets“, the Seattle Times too commented on Mr. Mastro and wrote about one of the latest lawsuits filed to recover Mr. Mastro’s bankruptcy estate assets. The lawsuit was… Continue Reading
Asset Search News Roundup: January 9, 2010
Posted in Asset Search News, Bankruptcy, Divorce & Child Support, Securities FraudThe January 9th "Asset Search News Roundup" provides an update on a couple of matters from Minnesota: Both "Money Laundering By Minneapolis Managers?" and "Associated Bank Sued For Supposedly Ignoring Red Flags" described pending civil complaints against suspected securities fraudsters Trevor Cook, Patrick Kiley and their companies. Another complaint filed against them was commenced on… Continue Reading
Mr. Mastro Supposedly Transfers His Rolls Royce & Other Assets
Posted in Asset Search/Fraud Investigation, Bankruptcy“Bankruptcy Fraud, Money Laundering & Hidden Assets” outlines how a Chapter 7 debtor hid his Porsche and Rolls Royce and other assets. That debtor eventually pleaded guilty to violating 18 U.S.C. §152 (Concealment of assets; false oaths and claims; bribery) and one count of 18 U.S.C §157 (Bankruptcy fraud). “An Asset Search For Automobiles” similarly… Continue Reading
Has Auto Magnate Dennis Hecker Hidden His Assets?
Posted in Asset Search/Fraud Investigation, Bankruptcy, Divorce & Child SupportAs a high-profile Twin Cities auto magnate, Mr. Hecker had been one of Minnesota’s largest car dealers. During April 2008, he sought a divorce from his wife of about fifteen years in Hennepin County Family Court, Case No. 27-FA-08-2731. Mr. and Mrs. Hecker however, stipulated to dismiss said divorce case during October 2008. At that… Continue Reading
Bankruptcy Estate Property Allegedly Concealed By A Cop
Posted in Asset Search/Fraud Investigation, BankruptcyAn "Asset Search In A Chapter 7 Bankruptcy Case" talks about researching a debtor’s bankruptcy petition and other court filings to help determine whether there is any fraudulently concealed bankruptcy estate property. This type of research recently resulted in the filing of a bankruptcy fraud complaint against Kelvin Daniels, who is a New York City cop. … Continue Reading
Asset Search News Roundup: September 4, 2009
Posted in Asset Search News, Bankruptcy, Securities FraudI discussed “clawback” in my July 18, 2009 “Asset Search News Roundup” as well as in “Clawback Caused By A Ponzi Scheme“. These articles explained that assets may be recovered by clawback which can force an investor to return presumptively fraudulent profits, as mentioned by In re: Bayou Group LLC, et. al., 396 B.R. 810… Continue Reading
Competing Over Mr. Allen Stanford’s Assets
Posted in Asset Search/Fraud Investigation, Bankruptcy, Securities Fraud, White-Collar Crime GenerallySuspected Ponzi schemer Allen Stanford may have facilitated one of the largest financial frauds known to date. Any receivers, investors or other stakeholders with claims against Mr. Stanford under bankruptcy or other laws, are of course trying to interdict Stanford’s assets. As I mentioned in my "March 25, 2009 Asset Search News Roundup", these competing… Continue Reading
Clawback Caused By A Ponzi Scheme
Posted in Asset Clawback & Securites Fraud, Asset Search/Fraud Investigation, Bankruptcy, Securities FraudImage: Steve Hillebrand / U.S. Fish and Wildlife Service Investors who profited because of Allen B. Stanford’s suspected securities fraud / Ponzi scheme may face clawback lawsuits under the Bankruptcy Code, according to Bloomberg.Com’s "Stanford Receiver May Need a Decade to Pay Victims". Investors who collected profits from Bernard Madoff’s Ponzi scheme could too face… Continue Reading
An Asset Search In A Chapter 7 Bankruptcy Case
Posted in Asset Search/Fraud Investigation, BankruptcyAn asset search for any bankruptcy estate property hidden during a Chapter 7 bankruptcy, usually begins with an investigation of the debtor’s court filings. For example, the following court filings may contain red flags that a debtor has concealed assets / property: the petition; schedules; statement of financial affairs; tax returns. Critical to an asset… Continue Reading
An Asset Search For Automobiles
Posted in Asset Search/Fraud Investigation, BankruptcyHarold is an asset recovery agent, ("repo man"), who works in New England. He sometimes lives out of his tow truck for a couple of days while searching for a particular debtor’s automobile. When I recently called Harold on his cell phone, he said: "Until I put the GPS in my tow truck, I had… Continue Reading
A Debtor & His Bankruptcy Fraud
Posted in Asset Search/Fraud Investigation, BankruptcyWith the lawsuit ending in a large money judgment in favor of the Judgment Creditor, the Debtor filed for bankruptcy in order to protect his personal assets. To collect on its judgment against the Debtor, the Judgment Creditor then filed a proof of claim as an unsecured creditor in the bankruptcy. The Judgment Creditor thought… Continue Reading