How can asset tracing help in litigation?
By Mike LaCorte, CEO of Conflict International
In complex litigation, one of the most critical challenges is ensuring the enforcement of a court's judgment or recovering assets from a debtor. Asset tracing, a specialised investigative process, is an essential tool that plays a pivotal role in achieving these objectives.
Ahead of my upcoming talk at the Offshore Events conference in London on 2nd December, I want to shed light on this intricate but invaluable aspect of the investigative process.
What is asset tracing?
Asset tracing is the methodical process of identifying, tracking, and locating assets owned or controlled by an individual or entity. These assets can include tangible property like real estate, vehicles, and valuable items, as well as intangible assets such as bank accounts, investments, intellectual property, or cryptocurrency holdings.
The process involves various investigative techniques, including forensic accounting, data analysis, public record searches, surveillance, and international collaboration. When assets have been hidden, transferred, or disguised to evade detection, asset tracing becomes even more intricate, requiring skill and persistence.
How does asset tracing support litigation?
Asset tracing is often the backbone of enforcement proceedings and disputes where financial recovery is the ultimate goal. Here’s how it contributes to the litigation process:
- Enforcing Judgments
Even with a court judgment in hand, recovery is not guaranteed if the debtor’s assets are concealed or inaccessible. Asset tracing ensures that creditors have a clear picture of the debtor's financial landscape, enabling effective enforcement. - Evidence Collection
Evidence of hidden or misappropriated assets can strengthen a legal case. Whether it's proving fraud or establishing ownership, asset tracing can provide the documentation necessary to support litigation claims. - Securing Injunctions
Identifying assets before litigation concludes allows claimants to secure freezing orders or other legal protections. These prevent the dissipation of assets while legal proceedings are ongoing. - Global Reach
In our increasingly interconnected world, assets are often moved across borders. Asset tracing can uncover offshore accounts, foreign investments, and other international holdings, ensuring no stone is left unturned.
Common scenarios requiring asset tracing
- Corporate Disputes: Locating assets in bankruptcy or shareholder disputes.
- Fraud Investigations: Tracing misappropriated funds or embezzled resources.
- Debt Recovery: Identifying assets to satisfy outstanding debts or loan defaults.
- Divorce Proceedings: When one party attempts to conceal assets to manipulate settlements.
Conflict International: Your partner in asset tracing
At Conflict International, we understand the complexities of asset tracing and its crucial role in litigation. Our global network of investigators, forensic accountants, and legal experts are skilled in uncovering assets, even when hidden behind layers of corporate structures, offshore jurisdictions, or blockchain transactions.
We leverage cutting-edge technology and years of expertise to deliver actionable intelligence to our clients, empowering them to make informed legal decisions. Whether it's recovering misappropriated funds or preparing for trial, we provide the clarity you need to pursue justice.
Join the conversation
If you'd like to learn more about asset tracing and its role in litigation, I invite you to attend the Offshore Events conference on 2nd December in London. I'll be speaking on this topic together on an expert panel with Michael Baker and Brian Stapleton. We'll explore how investigators, legal professionals, and clients can collaborate to achieve successful outcomes.
Asset tracing is a powerful tool in the arsenal of litigation professionals. By uncovering the hidden, it turns the abstract promise of justice into tangible results.
For more information about our services, please contact us to discuss your case confidentially. Let us help you find what others want to keep hidden.