An 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 search for concealed bankruptcy estate property, is the creditors’ meeting required by 11 U.S.C. §341.  This is true because the creditors’ meeting may be used by the Chapter 7 Trustee to examine the debtor about financial issues.  At such a meeting, creditors are also permitted to similarly question a bankruptcy debtor.  Among other things, an asset search for concealed bankruptcy estate property may also include the research described at “A Low-Cost Asset Search“.

A debtor caught concealing bankruptcy estate property could face bankruptcy fraud charges like those filed against  Michael Wamsley and Charles Wamsley, Jr. of Hendricks in Tucker County, West Virginia.  According to InterMountain.Com, the Wamsleys were charged with bankruptcy fraud and / or  making false statements.  As more fully described by their indictment , the Wamsleys allegedly concealed real property and farm equipment during bankruptcy proceedings.  According to the Court’s docket, the Wamsleys were scheduled for their initial court appearance and arraignment on September 10, 2008, in Clarksburg, West Virginia.

Copyright 2008-2011 Fred L. Abrams

Since public corruption crimes can involve the concealment of bribe money or other illicit assets, public corruption is the subject of this "Asset Search News Roundup".  As partly mentioned at  "White-Collar Crime & A Former Top Cop", Transparency International’s Corruption Perception Index annually ranks 180 countries by their perceived levels of corruption.  

The Corruption Perception Index specifically does this by assessing countries on a scale of "1" to "10.  As more fully described by a press release, the 2008 Corruption Perception Index was just released on September 23.  According to said press release, corruption is falling in Ireland while it is rising in the neighboring United Kingdom.

Copyright 2008 Fred L. Abrams

Data mining predicts patterns through electronic data base technologies like statistical analysis and modeling.  Some U.S. law enforcement agencies data mine to predict the criminal patterns of money launderers, terrorist financiers or other criminals.  The U.S. Department of Homeland Security for example, mentioned the following four data mining programs in its February 11, 2008 Letter Report to Congress:

  • “ATS”: Automated Targeting System Inbound and Outbound Cargo Analysis, at Customs and Border Protection;
  • “DARTTS”: Data Analysis and Research for Trade Transparency System, at Immigration and Customs Enforcement;
  • “FAS”: Freight Assessment System, at the Transportation Security Administration;
  • “NETLEADS”: Law Enforcement Analysis Data System, at Immigration and Customs Enforcement.

Financial Intelligence Units such as U.S. Treasury’s FinCEN, also specifically use data mining to combat financial crimes.  FinCen has worked on data mining projects with the help of the following companies: Oracle Corp.; SPSS, Inc.; SGI; Visual Analytics Inc.; and Nautilus Systems, Inc.  FinCEN has also expressed its continued interest in data mining at pages 52 & 62 of its FY2007 Annual Report.

Among other things, data mining helps Financial Intelligence Units and government asset recovery agencies conduct asset searches / interdict illegal assets.  One way Financial Intelligence Units can interdict illicit assets, is to use goATR / goAML asset recovery software.  This kind of software analyzes financial transactions and may detect illicit assets subject to asset forfeiture proceedings.

Copyright 2008-2019 Fred L. Abrams

The hacking of vice presidential candidate Governor Palin’s e-mail account at Yahoo, is examined by this "Asset Search News Roundup".  Based on the Washington Post’s "Hacker impersonated Palin, stole e-mail password ", the hacker violated federal privacy law 18 U.S.C. § 1030, (Fraud and related activity in connection with computers).

The hacker is also suspected of pretexting, (i.e. using false pretenses), while contacting Yahoo to gain access to Governor Palin’s e-mail account.  Pretexters sometimes illegally access other kinds of personal information, as described at: "Pretexting During An Asset Search" and "The Gramm-Leach-Bliley Act & An Asset Search".

Copyright 2008 Fred L. Abrams

While Byron Murphy was serving a 15 year sentence for robbing a Mesa, Arizona Radio Shack, he filed a pro se prisoner’s civil rights complaint against the F.B.I. and Special Agent Joe Gordwin, Jr.  Although the trial court issued its August 15, 2006 Order dismissing Mr. Murphy’s civil rights complaint, it permitted him to file a first amended complaint.

Mr. Murphy’s first amended complaint alleged that his wife had an extramarital affair with Special Agent Gordwin and that Special Agent Gordwin had taken her to meetings to scare her into continuing the affair.  Mr. Murphy further alleged that his life and those of his family members had been threatened by Special Agent Gordwin and that Special Agent Gordwin had tampered with a criminal case against Mr. Murphy.

In its September 11, 2006 Decision, the trial court finally dismissed Mr. Murphy’s first amended complaint on the ground of legal insufficiency.  Mr Murphy appealed this dismissal by filing a Notice of Appeal to the Ninth Circuit Court of Appeals.  The Ninth Circuit then affirmed the dismissal of Mr. Murphy’s complaint in its December 28, 2007 Judgment.  Five months later, Special Agent Gordwin however, was indicted in U.S.A. v. Gordwin, United States District Court for the District of Arizona, Index No. 2:08-cr-00535. 

As more fully set forth in said indictment, an East Valley Tribune article and a press release, Special Agent Gordwin is suspected of committing six counts of “honest services” wire fraud, five counts of making false statements and seven counts of witness tampering.  Among other things, the indictment alleges a cover-up and that Special Agent Gordwin even misused an FBI vehicle for an "improper intimate relationship".  The indictment’s most notable allegations may however, be what Mr. Murphy’s First Amended Complaint had also alleged: that Special Agent Gordwin made threats; tampered with Mr. Murphy’s criminal prosecution; and had carried on an affair with Mr. Murphy’s wife.

Copyright 2008 Fred L. Abrams

This "Asset Search Roundup" covers the guilty plea of Raffaello Follieri; a suspected tax return preparer fraud in Minnesota; and how cash is sometimes hidden by "zappers":

Copyright 2008 Fred L. Abrams

Attorney Terry Christensen was convicted along with private investigator Anthony Pellicano on August 29, 2008, as reported by The New York Times and The Wall Street Journal Law Blog.  According  to the criminal minutes from his trial, Mr. Christensen had been found guilty of his two-count indictment for violating 18 U.S.C. 371 (Conspiracy) and 18 U.S.C. 2511 (1) {a}  & {d} (Interception of Wire Communications). 

While representing billionaire investor Mr. Kirk Kerkorian in a child support case, Mr. Christensen had used an illegal wiretap to undermine Mr. Kerkorian’s adversary– Ms. Lisa Bonder Kerkorian.  As fully described at pages 15-17 of the government’s Trial Memorandum, Mr. Christensen had telephoned Mr. Pellicano on March 18, 2002 and authorized the illegal wiretapping of Ms. Kerkorian’s phone.  The wiretap ended on or about May 16, 2002 and had enabled Mr. Christensen to even eavesdrop on Ms. Kerkorian’s privileged conversations with her attorneys.

Mr. Christensen’s wiretap conviction could change how some attorneys interact with private investigators who perform background checks; asset searches; or other tasks.  As suggested by The Los Angeles Times article "Wiretap trial sheds light on lawyers’ work with private eyes", Mr. Christensen’s conviction might make attorneys more cautious in their dealings with private investigators.  In discussing Mr. Christensen’s conviction, an FBI spokesperson also said in a press release: "This case uncovered corruption by the wealthy and influential and today’s guilty verdicts render assurance that the justice system cannot be bought by those with money and power." 

Copyright 2008 Fred L. Abrams

Mr. Frank Lowy of Australia; Puerto Rico Governor Anibal Acevedo Vila; and articles regarding privacy issues; are all mentioned in this "Asset Search News Roundup":

  • The sale of data by the Iowa County Recorders Association to Datatree, has been temporarily suspended according to DesMoinesRegister.Com.  The sale raises privacy concerns because it includes the transfer of personal information like social security numbers.  Also raising privacy issues, is a recent Knoxnews.com article about a Tennessee Highway Patrol trooper who allegedly conducted unauthorized background checks.

 Copyright 2008 Fred L. Abrams

I first wrote about Donnie in my post, Forfeiture & The DEA’s Asset Search.  In that post, I mentioned that Donnie was a former Special Agent with the Drug Enforcement Administration who had gone to Iraq to train Iraqi Police.  Donnie recently left the Numaniyah National Police Training Academy to travel about an hour’s drive southeast of Baghdad on a military convoy to Al Kut ( Camp Delta).  He had gone to Al Kut to work through a contracting company on a new job, similar to that of a Border Police Advisor.

As part of his new job, Donnie will be sent to the Basrah Training Academy where temperatures can reach up to 140-150 degrees in August.  He will advise the Iraqi Department of Border Enforcement about its training course for recruits.  According to a Multi-National Force press release, the Department of Border Enforcement “training course is an eight-week course that involves instruction in military training, border patrols, checkpoint set up, vehicle searches, and detecting narcotic and human smuggling”.

In addition to covering the above subjects, Donnie will teach how to detect bulk-cash smugglers / illicit cash couriers, during border inspections.  As INTERPOL’s First International Conference on Illicit Cash Couriers suggested, training border personnel to detect cash smuggling is critically  important.  This is true because criminals like money launderers and terrorists often use couriers to conceal and transfer cash through airports or other border crossings.  FOXNews.com reported on July 29 for example, that terrorists smuggle cash across Iraq’s borders to help finance al-Qaida’s operating budget in Iraq.

Copyright 2008-2022 Fred L. Abrams

The instant "Asset Search News Roundup" mentions a suspected tax cheat who may have absconded to Costa Rica; Switzerland’s release of $60 million belonging to a leading Pakistani politician; and that software designed to combat financial crime is being tested in Australia:

  • Michael Miskin is under investigation for parking undeclared revenue at Liechtenstein’s LGT Bank, but may have absconded to Costa Rica.  According to The Sunday Times of London, Mr. Miskin is suspected of tax fraud because he was identified in a stolen LGT Bank customer list.  The Sunday Times also reported that Mr. Miskin had used LGT Bank to hide assets from his wife during divorce proceedings five years ago.
  • The New York Times reported that Swiss authorities have released about $60 million beneficially owned by leading politician Asif Ali Zardari, who may soon be named Pakistan’s president. Mr. Zardari’s funds were frozen as early as 1997 because of a  Swiss money laundering probe.
  • The United Nations Office on Drugs and Crime, recently advised that its "goAML" software will be tested by the Egmont Group through the Australian Financial Intelligence Unit,  "AUSTRAC".   A news release about the testing, explained that "goAML" is already being used in Canada and is designed to combat financial crimes like money laundering and terrorist financing.  Further information about "goAML" is described at its six page brochure.

 Copyright 2008 Fred L. Abrams