asset recovery

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A frequently asked questions Web page published by the Financial Action Task Force discusses multilateral initiatives and states: “Large-scale money laundering schemes invariably contain cross-border elements.”  The Trevor Cook receiver undoubtedly recognizes the foregoing because he is tracking receivership estate assets across international borders, on behalf of investors damaged by Ponzi schemer and securities fraudster Trevor Cook.

Among other things, the Cook receiver is trying to interdict assets which may have been laundered through Mr. Cook’s purchase of real property in Canada and Panama and by Mr. Cook’s transfer of funds into Swiss bank accounts.  Swiss authorities have already frozen a one million dollar bank account at UBS AG connected to Mr. Cook, on the ground of suspected money laundering.

Swiss authorities probably froze this bank account by relying on anti-money laundering legislation including Art. 305bis of the Swiss Criminal Code.  Art. 305bis says in part:

“Whoever commits an act suited to frustrate the determination of the origin, the discovery or the confiscation of assets that he knows or should know derive from a crime, shall be punished with imprisonment or a fine“Continue Reading Tracking Trevor Cook’s Assets Across U.S.-Swiss Borders

A successful asset search often requires gathering financial intelligence.  One financial investigator sought financial intelligence by doing “trash pulls”.  This investigator did trash pulls at an attorney’s home to elicit intelligence about the attorney’s client.  During one of these trash pulls, an envelope bearing the name of a climate-controlled art storage facility was discovered.  This…

Some post-judgment creditors, divorcing spouses and other private litigants use a domestic summons / subpoena to elicit an adversary’s bank customer information from a foreign bank witness.  Under limited circumstances, these private litigants might serve a domestic summons / subpoena, as set forth by the Court in First American Corp. v. Price Waterhouse, 154…

Have the methods mentioned at “Asset Search Indicia For Divorce, Debt Collection & Bankruptcy“, been used to hide assets during a financial fraud?  Are there any red flags that assets are being fraudulently concealed?  Finding answers to these questions can be critically important if you are trying to recover: marital assets; probate assets…

When assets are hidden in a foreign bank account or are otherwise offshore, domestic authorities might be able to seek asset forfeiture, discovery or other relief pursuant to a Mutual Legal Assistance Treaty (“MLAT”).  Depending on the circumstances, MLAT’s can particularly help domestic authorities trying to locate, (and then possibly forfeit), criminal proceeds which have…

The victims of a securities fraud, divorcing spouses, post-judgment creditors, etc. can have several remedies available to them if they need to recover assets hidden offshore.  One might even pursue an asset search or recovery in the various offshore tax havens.  This is particularly true when a bank is used as a laundering “link” to hide funds in a money laundering circuit or assets have otherwise been hidden during a financial fraud.

To cite just one example, I have previously filed letters rogatory / legal assistance requests with the Court in Geneva, (“the “Parquet du Procureuer général), because of suspected money laundering at two Swiss banks.  As mentioned at “An Asset Search With Letters Rogatory“, these kinds of legal remedies can sometimes be used to elicit financial information from bank witnesses.

Other forms of relief for those seeking to recover funds hidden offshore, can range from attaching a bank account to alerting a financial intelligence unit.  Local counsel in Geneva has analyzed these legal remedies which are available in Switzerland and in many other jurisdictions across the globe:

“As you probably know, Switzerland does not follow the common law doctrine. We do not adhere to the institution of discovery. The usual tools available to a claimant are therefore the filing of a criminal complaint, which is actually the most efficient way to get past the banking secrecy. Access to the information will be granted only if someone can be indicted. In exceptional circumstances a broader access to the information collected within the frame of the criminal investigation can be granted on a discretionary basis.


Continue Reading An Asset Search In Geneva

Money laundering typically involves disguising the true beneficial ownership of funds or other assets which are the proceeds of crime.  Because money laundering often extends beyond just one nation’s borders, over 170 jurisdictions worldwide have adopted the anti-money laundering policies of the Financial Action Task Force.  Some nations also follow the anti-money laundering recommendations…

A beneficial owner’s transfer of funds through banks in multiple jurisdictions, can be a red flag that assets have been secreted.  Purchasing large amounts of portable valuable commodities, hoarding cash, forming a shell company, etc, can also be red flags as mentioned by “Asset Search Indicia for Divorce, Debt Collection & Bankruptcy”.  The…

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…

A litigant demonstrating that an adversary has hidden assets offshore, bears the burden of proof in court under Federal Rule of Evidence 301 or other evidentiary  rules.  Such a litigant may be able to satisfy this burden with admissible evidence like authenticated copies of an adversary’s offshore bank account records.  Evidence like admissible copies of…