Asset Recovery

Sovereign Management Services operates a regional agency office for International Recovery Services, part of a world wide fraud investigation and asset recovery corporate conglomerate headquartered in the U.K. with 20 years of successful experience behind it.

It is an unfortunate fact that many people venture offshore to take advantage of all manner of investment schemes that later prove to be “pie in the sky” and “too good to be true”. Whether it be so called “High Yield Investment Programmes” commonly known by their acronym as “HYIP”, forex trading scams, bank debenture trade programmes, or something less obvious, the end result is that the investor is left with very little recourse.

Often, because of complexities of multiple overlapping jurisdictions, law enforcement efforts can be very slow. Also, law enforcement tends to be primarily focused on bringing the perpetrators to justice rather then recovering the investor funds.

It is a well known fact that many investment frauds are perpetrated from this part of the world, sometimes because of the ease with which certain officials in high places can be bribed and/or the perceived laxity in regulating financial and investment activity. As a result this regional office was established here in Panama because of this growing propensity. Some very high-profile recent recovery successes in neighbouring countries such as Costa Rica have been achieved in recent years by the firm.

However, regardless of the investment situation and the jurisdiction(s) involved our highly skilled teams of ex-Scotland Yard and ex-U.K. military professionals have the expertise, discipline and canniness to outsmart the foxes who perpetrate these frauds. They covertly identify assets, the backgrounds and modus operandi of the perpetrators and then work a plan to recover them. Where assets can be located the success rate runs at over 90%.

They utilise a variety of techniques which include covert methods as well as judicial processes when appropriate, to identify and take possession of the assets. It should be stressed that no laws are ever broken to achieve this end, nor is the violence or the threat of violence ever used. There are many psychological tricks that can be effectively used to persuade the scammer that it is not worth their while to continue to hold onto the funds or assets, without any need to step outside of the law.

A very reasonable expense retainer is charged up front and, more importantly, a very diverse and comprehensive list of references of actual former clients can be provided, who have successfully been able to recover funds from investment schemes that turned out to be fraudulent. In some cases if it becomes quickly obvious that no assets can be recovered because the scammer is found to be in jail or dead, the remaining balance of the expense retainer, that was not required to ascertain this fact, can at least be refunded.

Below we have assembled the most commonly asked questions and reactions posed by victims.

When should I start moving to get my money back?

Asset recovery can become relevant to a transaction at any point the aggrieved party wants their money back, has the contractual, legal or moral right to it, and is hindered or denied from getting it.In some instances, it is prudent, or even necessary, to obtain a legal judgment - but the process can always begin long before that.

Can't I just tell them if they don't give me my money back I'm going to send them to jail?

Sometimes a discussion of the facts between the aggrieved (or their representatives) and the offending party may be all that is necessary to effect a recovery. However, care must be undertaken in such discussions. For example, it is illegal to threaten prosecution in exchange for money even if the person threatening is rightfully owed the money. That is extortion and can be more detrimental to the aggrieved than the offender. There are also slander, libel, defamation, harassment and other issues as well as potentially serious ramifications if the recovery effort is carried out improperly or contrary to agreements.

I'm going to stick my attorney on them!

In all asset recoveries, knowledge is power and it pays to be armed with knowledge of all the relevant facts, supported by as much documentation as possible, before one acts. It almost always pays to have experienced professionals involved in any asset recovery effort, yet victims often resist or deny this reality. They either have no more money with which to pay for such services, or cannot bear to part with more, or they don’t have confidence the process will result in success; yet ironically they often pay lawyers to get judgments which are extremely difficult to enforce.

Just how much does an asset recovery specialist need to know?

The recovery process begins with clear and comprehensive documentation. Withholding information from the asset recovery specialist, for any reason, only hurts the aggrieved. Yet often because they are embarrassed, or know or fear they have done something improper, victims withhold relevant facts. This is always to their detriment. Sometimes they are ignorant of what is relevant and fail to mention important items. A good asset recovery specialist must be a good investigator to overcome this.

Further steps in the process are determined by the nature of the transaction in which the loss occurred, the documentation available, access to the offenders and their records, and other factors. There is no standard recovery procedure. Sometimes lawyers should be involved, other times they hinder the chances of a recovery. Likewise, sometimes involving law enforcement or regulators is valuable, other times it can be an impediment.

How much time do I have?

Time is always of the essence. Every day the offender controls improperly or illicitly obtained funds, recovery becomes that much more difficult. In cases of outright fraud, the scammers immediately begin layering and laundering the misappropriated funds under different names, shell corporations, offshore entities and attorney trust accounts, rendering the funds difficult – sometimes impossible – to trace and hence recover. Legally there are statutes of limitations on crimes. This hinders civil or criminal prosecution, obviating the option of pressuring the offenders with law enforcement. Then there is dissipation of funds; scammers often spend every penny that comes in, and even when they are caught, prosecuted and ordered to repay, there is nothing left to repay with. The moment they purchase a major asset like a car it loses a significant portion of its value. Thus even if the car is ultimately repossessed, it is sold at a fraction of what it cost, and if there are multiple victims, each gets that much less of the fraction recovered.

Having said this it is never too late to try and recover assets, because unless the scammer is in jail or dead it is unlikely that they have retired from their fraudulent activities, since they get used to a certain lifestyle and become addicted to continuing on with the perpetration of their scams. The result is that they often accumulate extensive assets over time. These sorts of situations can sometimes be the easiest to collect from because the scammer least expects someone so long from his past to be on his doorstep!

I'm going to give them one more chance

Denial also plays a major role in the success or failure of asset recovery. Denial usually appears on cue when an opportunity first arises. It suppresses common sense and good judgment, but this phenomenon can be countered by hiring a good due diligence firm. If negative information kills the deal, the best kind of asset recovery has taken place: there was no asset loss to begin with. If the deal progresses and fraud occurs, don’t let denial cause you to procrastinate triggering immediate action.