Recovery losses in a fraudulent investment case is not a hopeless endeavor. If you are a victim of any type of fraud, or have a valid judgement against a debtor, do not give up on getting back the funds which belong to you. The key to successful recovery is exploiting all available resources.

Do not take the position that your scenario is a “collection” matter. Collection implies that the money belongs to the fraudster and that the efforts are to beg it back or get a debt paid. The mantra of asset recovery is to begin with the belief that the money belongs to the victim/creditor. It is a matter of taking it back aggressively, but legally.

Money does not evaporate. It is spent, invested, hidden or squandered. But it is not erased. Following the flow of funds to wherever they went is the open door to unlimited resources for recovery. Think it can’t happen? In one of the largest ponzi schemes in the past decade, victims in the $1.2 billion Scott Rothstein fraud may see a return of 100% of their assets due to the extraordinary efforts of the receiver in that case.

This and other successful asset recovery missions is achieved with the following 4 point approach:

  • Flow of funds – clawback
  • Third party liability
  • Co-conspirators
  • Aggressive negotiations

In the Global Bullion Exchange fraud case, the victims asset recovery team is going after the firms former bank, Wachovia, for not overseeing the fraud accounts properly. “Either they knew what was going on or they weren’t monitoring the accounts the way they should have been,” said the victims attorney.

These are both excellent examples of high level asset recovery methods using all available resources.

Watch the video below and hear more details of how this is approached.