Recovering Assets Across International Borders

Presented at the

2004 Fall Meeting; Future of the Americas

Cross Border Insolvency Program

October 2004

Houston, Texas

Introduction and Background

• You have the background material on Citigate and you have a copy of my profile in your handouts

• My purpose today is to discuss how to be successful in recovering assets across borders

• While we have been successful, as part of litigation teams, in recovering assets abroad I want to emphasize that it is always difficult and always challenging. Success requires creative thinking and an organized, diligent approach.

Understand the Project’s Scope and Fact Environment

• A correct understanding upfront prevents expensive and time consuming mistakes

• Getting it right upfront allows for careful plan and provides attorneys and client with a reality or gut check

• Is the project reasonably? What are the chances of success? How determined/dedicated is the client? Will he/she stay the course necessary?

Target

• We all want to find the golden goose. Will we recognize it when we see it? Is it what it seems? Who owns it?

Is it for Real or a Fairy Tale? A Trained Investigator Takes a Close

Look at the Golden Goose

How to be successful?

• Develop a process to monitor, collect and analyze facts.

• Be country and culture specific• Where are the pitfalls?• How much can be done before the target knows

you are investigating? Always Know more than anyone expects you to know.

• Detail assets as to form, location, control and mobility

Develop Sources of Information

• Sources and their reliability are key

• Access to sources must be compatible with rules of litigation

• How do we find sources? We take a systematic approach

• Just use the Bull’s Eye. May have to be used over and over.

The Bull’s Eye System

Who Knows What We Want to Know?

• The target person or firm. His/her family, executives, business partners/associates/customers, owners, friends, advisors etc.

• Can’t get to the target? – Get to the people who know him/her the best.

• Create an environment where the ones who know will talk to you

Recovery

• Once the assets are identified, assessed and under your watchful eye plans need to be made for recovery.

• Put plans in place to prevent dissipation of assets• Ensure that investigators know what is required to

take control of assets, the possible defensive moves and how to move quickly. Moving quickly can greatly increase chances of success if properly planned and executed.

Barriers to Success

• Getting the facts wrong• Relying on single source information or

information put out there by the target and his team to mislead (Use the “trust but verify”) approach.

• Misreading the culture, politics, personalities, judicial system and opponents

• Relaxing your guard and counting your little golden geese too quickly