An asset search for stock share certificates begins with looking for red flags.  These red flags are listed at the July 2019 paper “FIU Tools and Practices for Investigating Laundering of The Proceeds of Corruption.”  As page 19 paragraph 29 of the paper says, you should look for:

[R]eceiv[ing] or purchas[ing] shares (or the option to purchase shares):

  • In a company in exchange for services; or
  • In a company where the purchase is financed by the vendor; or
  • In a company where the purchase price is below the net asset value of the company; or
  • In a company and receives a dividend from the company which is disproportional to the purchase price; or
  • Which give the right to sell shares at a price which is higher than either the current market value or the price at which the shares were purchased; or
  • And profit from a share transaction where the purchase and selling dates of shares are within a short time period.”

The July 2019 paper is about corrupt politicians who launder illicit assets. Bribe-taking politicians for instance, may hide bribe monies by transferring them through “several foreign jurisdictions.”  Crooked politicians or other launderers also use stock share certificates in their schemes to hide assets.  They first establish shell companies. Next, they issue the stock share certificates for the shell companies to themselves. The crooked politicians/launderers then title bank accounts; real estate; high-value automobiles; etc. in the name of the shell companies. To see how some individuals carry out this kind of scheme you can read my post “Bearer Shares & An Asset Search.”

Copyright 2019 Fred L. Abrams