INSOLVENCY ASSET RECOVERY – RECOUPING THE LOSS USING FORENSIC TRACING AND FRAUD INVESTIGATION RESOURCES
When a major fraud is eventually discovered those companies taking aprt are often forced to enter insolvency proceedings. This reduces the chance of civil asset recovery and often increases the difficulties in tracing and retrieving assets diverted by the fraudster. However, our approach to asset tracing using forensic resources can often benefit disadvantaged creditors recover value or assist Insolvency Practitioners in their work.
Many frauds only come to light when a company enters formal insolvency proceedings. It is then, when the books and records are exposed to the external scrutiny of the Insolvency Practitioner that systematic or opportunistic diversion of funds is discovered. Other times uncovering a fraud will crystallise the insolvency of the business and call for rapid action before further losses occur.
Understanding the mechanics of the fraud and establishing an evidential trail is vital to recovering the proceeds of the crime. Delay encourages those involved to falsify or destroy the records that will verify what they have been doing.
As independant fraud investigators we can assist the Insolvency Practitioner to secure documents and initiate the recovery process. We are used to dealing with losses that have occured many years previously and are able to get to grips with the function and purpose of the business and to understand the way in which it was being managed, thus giving a head start to the investigation.
WE WILL TAKE ON CASES FOR INSOLVENCY PRACTITIONERS WHERE THERE ARE LITTLE OR NO FUNDS AVAILABLE IN THE “POT”
Some assets are never recovered for the creditors because there are no resources available to fund the fraud investigation and asset tracing process. We will assess a case at no obligation to the Insolvency Practitioner – if it meets our criteria for investigation we will undertake an initial investigation on a contingent basis or alternatively funded by one or several of the creditors.
We are experienced at questioning individuals quickly brought before a judge under provisions of s236 or s366 of the Insolvency Act 1986 – thus saving costs and allowing the interrogation to be undertaken by the fraud expert who has full knowledge of the case.