How G2 applies skill, talent, experience, and timing to the art of financial asset recovery and collection

Financial asset recovery refers to the locating and repatriation of money or other valuables that have been stolen, misappropriated, or wrongfully withheld from a victim. Recovery has several aspects, including but not limited to understanding every part of and party involved with the underlying transaction in which the assets were used, and whether or not that transaction was fraudulent. Tracking money through the banking system is generally involved, but an investigation into companies and entities associated with those who may be holding the assets is also a key to success.

Financial asset recovery is a process that starts at the beginning of a transaction, not at the end. It starts with due diligence before a deal is even negotiated, continues with solid documentation, obtaining legitimate security for invested funds, proper corporate or transactional structure, and clear legal remedies in the event of a default.

Financial asset recovery is an art, not a science. It requires skill, experience, timing, intuition, psychology, tenacity, resources, an understanding of applicable laws and luck.

Financial 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.

In all 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 also pays to have experienced professionals involved in any 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; but ironically they often pay lawyers to get judgments which are extremely difficult to enforce.

The recovery process begins with clear and comprehensive documentation. Withholding information from the financial asset recovery specialist for any reason only hurts the aggrieved. 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 recovery specialist must be a good investigator to overcome this.

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.

Denial also plays a major role in the success or failure of 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. Don’t let denial cause you to procrastinate triggering immediate action. Every minute you waste works against you and the recovery specialists working on your behalf.