Freezing bank accounts maintained by nominees and Scottish prosecutors investigate a suspected tax fraud.

  1. Fraudulently conveyed assets may be recovered even if they are concealed in bank accounts maintained by straw persons / intermediaries (i.e. nominees).  A post-judgment creditor for example, can conceivably freeze or restrain nominee bank accounts in New York, as partly suggested by ERA Mgt. v. Morrison Cohen Singer & Weinstein, 605 N.Y.S.2d 91 (1st Dept 1993) and Bingham v. Zolt, 647 N.Y.S.2d 220 (1st Dept 1996).
  2. In their investigation of money laundering connected to a suspected Value Added Tax carousel fraud, Scottish prosecutors are scrutinizing alleged Delaware company “Trust Union LLC”.  The prosecutors’ letter rogatory filed in federal court on August 29th, asserts the suspected criminal scheme involved cross-border elements.  These elements could have included two accounts at Alpha Bank of Greece and the likely purchase of the house at 34 Kenilworth Road, located along this picturesque route in Stirling, Scotland:

    Image: Google Maps

    Copyright 2011 Fred L. Abrams