Asset InvestigationsAsset InvestigationsA to Z A to Z

By

Jim Cronin, MPA, CFE Seattle Insurance and Legal Investigations

Presented to:

Washington State Paralegal Association

June 7, 2014

Opening Opening • Introductions

•Handouts

•Sample Reports

•Limitations

OVERVIEWOVERVIEW•Audience Assessment

•Terminology

•Reasons For Conducting an Asset Investigation

•When should you conduct an Asset Investigation?

BROAD OVERVIEWBROAD OVERVIEWOF STEPSOF STEPS

• Determine the PURPOSE of your investigation.

• Determine the SCOPE of your investigation.

• IDENTIFY the DEBTOR

• ADDRESS HISTORY of DEBTOR(S)

• Find the ASSETS

• REALITY CHECK TIME

• Find the ENCUMBRANCES

• Make a DETERMINATION

Logic Path

DETERMINE THE SCOPE & PURPOSEDETERMINE THE SCOPE & PURPOSEOF YOUR INVESTIGATIONOF YOUR INVESTIGATION

Logic PathLogic Path•What do I know about this incident?

•What do I suspect?

•What issues am I trying to resolve?

•What information would help me resolve those issues?

•Where can I get that information?

CLOSER VIEW OF OVERALL CLOSER VIEW OF OVERALL PROCESSPROCESS

• IDENTIFY THE DEBTOR• Individual?

– Current Identity?

– Previous Names

– Nicknames

– Trade Names

•Marital Community?

• Sole Proprietorship?

•Corporation(s)– Subsidiary Corporations?

CLOSER VIEW OF CLOSER VIEW OF OVERALL PROCESSOVERALL PROCESS

•What kind of Debtor are you dealing with?

Types of DebtorsTypes of Debtors

DEVELOP AN ADDRESS HISTORYDEVELOP AN ADDRESS HISTORY

• Importance of Addresses:

•Records are filed by counties!

•Some cities are in two counties!

•You need to know where to look!

SEARCH FOR ASSETSSEARCH FOR ASSETS

•Definition of an Asset:

•Something of value that a debtor owns that could be attached/seized to satisfy a debt.

EXAMPLES OF ASSETS:EXAMPLES OF ASSETS:

• Real Property

• Businesses

• Vehicles

• Vessels

• Employment

• Pending civil suit settlements

• Inheritences

• Aircraft

• Intellectual Property

REALITY CHECK TIMEREALITY CHECK TIME

• If there are no assets, encumbrances are a moot point.

SEARCH FOR ENCUMBRANCESSEARCH FOR ENCUMBRANCES

• Definition of Encumbrance:

•Impediment on property that lowers its value or makes it more difficult to gain title to.

EXAMPLES OF ENCUMBRANCESEXAMPLES OF ENCUMBRANCES

• Deeds of Trust (Mortgages)

• Bankruptcies

• Tax Liens• Federal

• State

• County

• Judgments

• Unpaid Court Fines

DETERMINE THE NET ATTACHABLE DETERMINE THE NET ATTACHABLE EQUITYEQUITY

•Current Market Value

•MINUS Value of Superior Encumbrances

•= Net Attachable Equity

MAKE DETERMINATION OF FEASIBILITYMAKE DETERMINATION OF FEASIBILITYOF RECOVERYOF RECOVERY

• Homeowner’s Exemption - $125,000

• Likelihood that Debtor will Abscond/Destroy Assets

• Number of other entities with Superior Claims also seeking to recover from Debtor

• Cost of pursuit of assets versus value available

• Timing of recovery efforts

•Late to the Party??

DETAILED STEPS IN SEARCHINGDETAILED STEPS IN SEARCHINGFOR ASSETSFOR ASSETS

• Fully Identify the Debtor

• Start with Source Documents

–Police Report etc

•Use Subject ID Form

• JIS

– Full Legal Name

–Date of Birth

–Physical Description

–Address on file with Courts

DETAILED STEPS IN SEARCHINGDETAILED STEPS IN SEARCHINGFOR ASSETSFOR ASSETS

Fully Identify the Debtor (Continued)

TLO and Accurint:

Premier investigative databases.

Surnameof record

First Name of record

Middle Name/Initial

Suffix Social SecurityNumber Associated

with this Name

Date of Birth/Age

Notes

DETAILED STEPS IN SEARCHINGDETAILED STEPS IN SEARCHINGFOR ASSETSFOR ASSETS

Address City, State, Zip Code

County Dates Reported

Notes

• Develop and Address History• TLO + Accurint

• + Other Sources

WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE

• REAL PROPERTY:• TLO/Accurint

• Recorder’s Offices

• Assessor’s Offices

• VEHICLES:• IVIPS

WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)

• BUSINESSES:• WA Department of Licensing

• WA Department of Revenue

• WA Secretary of State

UBI BusinessName

TradeName(s)

Bus.Type

DateOpened

(Descending)

Date Closed

GoverningPersons

Address RegisteredAgent

Notes

WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)

• Employment:• Accurint – People at Work

• TLO – Comprehensive Report

• Professional Licensing – WA Department of Licensing

• News Articles – NewsLibrary

• LinkedIn

• Facebook

WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)

• Pending Civil Suit Settlements• WA Administrator of Courts

• SCOMIS

• Newspapers

WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)

• Insurance/Bonding• WA Labor & Industries

• WA Department of Licensing

WHERE TO SEARCH FOR WHERE TO SEARCH FOR ENCUMBRANCESENCUMBRANCES

• TLO/Accurint:• Bankruptcies

• Tax Liens

• Judgments

• Notices of Default

• Recorded Documents:• Deeds of Trust

• Tax Liens

• Liens on Property

• Lis Pendens

SEARCHING THE RECORDERSEARCHING THE RECORDERAND ASSESSOR’S OFFICESAND ASSESSOR’S OFFICES

• Files are intertwined

• Assessor:• By address

• By parcel number

• By name (at Assessor’s Office)

• Recorder:• By name

• By parcel number

Searching the Searching the Recorder’s OfficeRecorder’s Office

• Online

• At Recorder’s Office

• King County : At Archives

• Limitations:• Images of all documents are not available online.

• e.g.: Deeds of Trust in King County

Searching the Searching the Recorder’s OfficeRecorder’s Office

(continued)(continued)

• Some types of documents relevant to asset investigations:• Deeds of Trust

• Reconveyances

• Liens

• Excise Tax Affidavits

• Marriage Certificates

• Lis Pendens

• Warranty Deeds

Searching the Searching the Recorder’s OfficeRecorder’s Office

(continued)(continued)

• Many types of documents are recorded!

• The Recorder does not verify documents’ authenticity!

• Not everything that is recorded is real!

• Pay attention to “When recorded, return this document to _____”

Searching the Searching the Recorder’s OfficeRecorder’s Office

(continued)(continued)• Search Tips:

• Search by all variants of names

• “No Record Found” is a result!

• “If you see it, print it.”

• King County does not post Deeds of Trust –– TLO & Accurint have details of Deeds of Trust online

• Importance of hyperlinked documents (“Related Documents”)

SEARCHING FEDERAL COURTSSEARCHING FEDERAL COURTS

• PACER:• Bankruptcy Filings

– Hyperlinked to actual documents/schedules

– Archived within several years

• Federal Civil & Criminal Cases Also

SEARCHING WA COURTSSEARCHING WA COURTS

• Start with AOC Site:

SEARCHING WA COURTSSEARCHING WA COURTS

• SCOMIS:• County by County

– Civil

– Criminal

– Juvenile

– Domestic

– Probate

• CourtTrax, CourtLink & Others…

SEARCHING WA COURTSSEARCHING WA COURTS

• JIS• Non-Civil Cases Statewide

• District/Municipal Civil Cases

• ACORDS• Apellate

• State Supreme Court

ASSET & ENCUMBRANCE RELATEDASSET & ENCUMBRANCE RELATEDWA COURT RECORDSWA COURT RECORDS

• Garnishments

• Judgments

• Child Support Obligations

• Unpaid Court Fines

• Civil Cases Pending Awards

• Probate

WA VEHICLES & VESSELS -IVIPSWA VEHICLES & VESSELS -IVIPS

• Attention to detail is critical!

• Log EVERY search!

• Check my website for Excel Spreadsheet

• Accounts are Subject to Audit!

• Understand Syntax: LAST,FIRST

• Can search by:• Name

• Plate – no spaces!

• VIN/HIN

WA UCC FILINGSWA UCC FILINGS

• Secured Party

• Debtor Party

• Collateral

• Effective Date

• Lapse Date

OTHER SEARCHESOTHER SEARCHES

• News:• NewsLibrary

– Nationwide

– Full Text

– Boolean Operators/ Advanced Search Options

– National/Regional/Local News

– 5000+ sources

• Social Media

• Google Searches

SEARCH TIPS:SEARCH TIPS:

• Syntax varies widely!

• Search until you get a result!

• Use Truncation

• “No record found” is a result

• If you see it, print it!

• Keep track of search terms used• Matrix

ASSET DEFENSE STRATEGIESASSET DEFENSE STRATEGIES

• Real property owned in name of trusts

• Bleeding off equity (second mortgages)

• Fake bankruptcies

• Real property/vehicles leased versus owned

• Real property listed in wife’s maiden name

Questions??