Asset Search Blog

Investigating & Recovering Hidden Money & Other Assets

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A scheme to hide assets may start out with the primary goal of placing assets beyond your reach. The scheme may then develop the secondary goal of hiding assets from tax authorities/committing a tax fraud. To increase your chances of a successful asset search, you should therefore look for indicators of tax fraud. A good list of the indicators is published by the IRS at IRM 25.1.2.3, Fraud Handbook – Indicators of Fraud. Just…
During your asset search gather tips from witnesses who not only know about your adversary’s assets but are also at odds with your adversary. If you are litigating against your adversary you might collect tips from these witnesses by deposing them. Additionally, you should consider hiring a private investigator to conduct witness interviews to sniff out tips concerning your adversary’s assets. A witness interview I attended alongside an investigator is described at my post: “…
You may be able to use 28 U.S.C. § 1782 to perform asset searches connected to your foreign: divorce; dispute over a will; financial fraud claim; etc. This is true because pursuant to 28 U.S.C. § 1782, the U.S. District Court can allow you to serve subpoenas in the U.S. in furtherance of lawsuits in a foreign land.  You would serve these subpoenas on U.S.-based witnesses with knowledge of the assets. One subpoena based on…
Searching for an adversary’s hidden assets can be like tracking a shell-game-operator.  In USA v. Khalili for instance, Mr. Dan Farhad Khalili was accused of hiding assets & undeclared revenue from the IRS for 15 years at 5 offshore banks. The offshore banks were located in Switzerland & Israel. Although on 4/27/11 Mr. Khalili applied for the IRS’ Voluntary Disclosure Program, the IRS found him ineligible for it. Mr. Khalili ultimately pleaded guilty to failing…
In the criminal case against Robert Bandfield, the IRS & SEC searched for assets laundered offshore. These assets were the proceeds of stock pump & dump schemes.  The illicit proceeds of the pump & dump schemes were more than $250 million. The $250 million was believed to be hidden by money laundering carried out by Mr. Robert Bandfield & his co-conspirators. According to a 2/6/17 press release, Mr. Bandfield was the “architect of [an]…
A person who resides & is sued out of the U.S. may hide assets in the U.S. This person could hide assets by secretly: purchasing real estate in the U.S.; opening bank accounts in the U.S.; titling property in the names of shell companies formed in the U.S.; etc. How can you search for assets which are hidden in the U.S.? If the hidden assets are connected to a lawsuit outside the U.S., (& you…
A person hiding assets from you could park their money in an offshore bank account & hire an intermediary to be the account’s bank signatory. One website offers this “Bank Nominee Signatories Service” for a cost of about $1000 per year.  This person could additionally title their real estate in the name of shell companies. A person can also hide assets by converting cash into portable valuable commodities like diamonds and smuggle the diamonds offshore.…
A) PROGRAM DESCRIPTION At the New York County Lawyers’ Association on October 3, 2017 from 5:30 PM to 9:00 PM, I will be the program chair of “Whistleblowers, Secret Swiss Bank Accounts & Recovering Hidden Assets.” Attendee registration is available at the website available here or by calling the New York County Lawyers’ Association at (212) 267-6646. During the October 3rd program, I highlight the use of whistleblower tips to recover hidden assets.  I show…
According to The Financial Action Task Force anti-money laundering group: Beneficial owner refers to the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement. Glossary of the FATF Recommendations, Web. July 10, 2017. A divorcing spouse may conceal his/her beneficial ownership of community property by titling: bank
One way to learn how to search for hidden assets is to read “A Laundry List For An Asset Search.” Another way is to study money laundering typologies. Money laundering typologies are used by law enforcement and regulators to develop countermeasures against emerging criminal trends. “100 Cases from the Egmont Group” contains a wide variety of money laundering typologies.¹ Although “100 Cases from the Egmont Group” arises from data collected…