Look before you leap into your asset search by taking a multifaceted approach.

“Red Flags For An Asset Search” lists the common methods for concealing assets including the use of shell companies; offshore bank accounts; sham trusts; etc. To successfully search for assets hidden by these methods, a multifaceted approach is often necessary. You may need to determine beneficial ownership; & look for laundered assets; & employ letters rogatory; & follow the other suggestions outlined by “7 Tips For A Successful Asset Search.”  If you rely on just one of these approaches, you might not gather enough evidence to demonstrate to a court that assets were hidden from you. For example, “7 Tips For A Successful Asset Search” says you might use letters rogatory¹ to collect information from witnesses residing offshore.

Under certain conditions, a letter rogatory can be invaluable in a search for evidence of a secret offshore bank account. Since letters rogatory do not work 100% of the time, it is best to take a multifaceted approach in your asset search.  One letter rogatory which apparently did not work, was filed at In re Application of Victor Mikhaylovich Pinchuk, U.S. District Court for the District of Wyoming, Docket No. 13-cv-00251.  Ukrainian billionaire Mr. Pinchuk used the letter rogatory to try to get documentary evidence about assets owned by Ferrost LLC (“Ferrost“), a business entity in Wyoming. Mr. Pinchuk’s court papers claimed he needed this evidence because his business partners had allegedly misappropriated assets. The court papers also alleged “Pinchuk should have been offered an opportunity to participate in [the ownership of] Ferrost or its assets…”

Mr. Pinchuk intended to use any evidence obtained about Ferrost, at a London arbitration & at legal proceedings in Cypress. On May 7, 2014, the federal court in Wyoming issued an Order directing Ferrost to comply with Mr. Pinchuk’s subpoena. The subpoena requested documents relating to: assets owned by Ferrost; how Ferrost was capitalized; the identities of Ferrost’s shareholders; etc. At a May 20, 2014 affidavit, Ferrost alleged it possessed no business records in the United States. Ferrost therefore only supplied Mr. Pinchuk with organizational documents Ferrost had filed with the Wyoming Secretary of State. Despite Mr. Pinchuk’s letter rogatory & the Court’s May 7, 2014 Order, Mr. Pinchuk was apparently unable to gather information about assets owned by Ferrost.

¹”Preparation of Letters Rogatory” courtesy of U.S. Department of State.

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Copyright 2016 Fred L. Abrams