Asset Tracing Services in Houston TX
Asset tracing services are used to investigate how material assets have been appropriated, divided, and perhaps concealed. Asset tracing is used to “follow the money” in an effort to support litigation, uncover fraud, or confirm that assets have been handled appropriately.
There are several types of cases where asset tracing expertise may be required. In each instance the process is complex and requires expertise in several areas to execute effectively, and the forensic accountants at Evident Pros can help.
When Asset Tracing Services are Needed
Asset tracing services are typically requested by clients who have reason to believe their assets have been wrongfully taken and concealed. This could be a concern in nearly any case, but it’s most commonly used to support the following types of litigation:
- Fraud – Asset tracing is a fundamental part of fraud cases as it Is used to track down stolen funds, commodities, and other assets.
- Bankruptcy – During bankruptcy hearings, asset tracing services can be used to discover additional assets that should be included in the case.
- Marriage dissolution – During a divorce, asset tracing can be used to discover assets withheld from distribution and ensure they are equitably split up.
- Contract negotiations or breach of contract – If a contract’s terms are breached or if the organization is about to enter into contract negotiations, asset tracing can be used to discover assets that can be recovered for a judgment, or it can be used for due diligence purposes.
- Probate – Probate cases are part of the estate liquidation and division process. If the estate was in possession of significant assets, asset tracing services can verify that everything owned by the estate is properly incorporated into the probate case.
Identify, Secure, Recover: The Three-Step Asset Tracing Process
At the top level of analysis, asset tracing can be reduced down to three steps:
- Identify the assets in question
- Secure the assets to preserve them
- Recover the assets and return them to the client
Each step requires a different set of investigative tools and court maneuvers to execute. Here is a closer look at each phase:
- Identifying assets – The first step is to identify which assets have been potentially misappropriated, who has taken them, and where they are concealed. This stage requires extensive data and financial record analysis, a public records search, and on-the-ground investigative work. While identifying assets, there is always the chance that additional items of value will be discovered and incorporated into the case.
- Securing assets – Once any recoverable assets are discovered, it’s critical to secure them before they are concealed again or exchanged for other goods. In practice, this means working with local courts and authorities to freeze accounts and seize any tangible goods.
- Recovering assets – Once the assets have been found and locked down, it’s time for recovery. This is done solely through court proceedings and with the help of an experienced forensic accounting team. Asset recovery may take years to fully resolve, but additional recoverable assets may be discovered during the process and improve returns.
This is a general overview of how asset tracing works. Day-to-day, though, the job is far more complex and dynamic, and much of it centers around gathering information.
Why Businesses and Individuals Choose Forensic Accountants for Asset Tracing
If you or your organization requires asset tracing services, partner with a forensic accountant that has experience in this area. Here are some of the reasons to work with the experts:
- Comprehensive skillset – Asset tracing requires a multidisciplinary approach that includes extensive experience with investigations, interviewing, research, and accounting skills.
- Far greater efficiency – Speed is critical when tracing assets. The longer it takes to locate and secure the assets, the harder it will be to recover their full value. Professional investigators can move much faster than an inexperienced or untrained person could. By acting quickly, a forensic accounting firm will maximize recovery chances.
- Presentation skills – Eventually, the case will play out in the courts. When it does, a professional investigative firm will know how to format the information it has gathered so that it can be easily processed and understood. The outcome of any litigation may depend on how well the forensic accountants report their findings. The professionals know this and therefore invest time in getting their presentation right.
- Compliance with relevant jurisdictions – Asset tracing cases are often multi-jurisdictional affairs, with assets spread far and wide. In some instances, these cases can involve other states or countries, each with their own laws. For example, some jurisdictions track a wealth of public data that makes it easier for investigators to do their job. Others make the job more difficult. And what’s admissible as evidence in one jurisdiction may not be allowed in another. We are aware of these differences and ensure all information-gathering is done in compliance.
How a Professional Asset Tracing Team Gathers Information
Information is the foundation of every asset tracing case. The information is used to identify asset locations and value. It’s used to discover transactions. It’s used to create links between people of interest and assets of interest. In short, accurate information makes a strong case. Here is how forensic accountants gather this valuable information:
- Online research and data gathering – Online research can turn up a variety of leads when doing an asset search. Public filings, property records, social media, and court records can build a general picture of who may be appropriating assets and where those assets may be kept. Investigators also have access to private datasets that they can use to perform a deeper search.
- Document and account reviews – Most meaningful information won’t be publicly available. Instead, it will have to be gathered through accounting or digital forensics. Forensic accounting is used to track how and where cash is flowing out of the account. This can be used to identify unusual activity. Digital forensics are useful for combing through e-mails and other communication channels to uncover evidence. Digital forensic experts can also recover deleted or hidden data off hard drives and other devices to uncover additional information.
- On-the-ground investigations – Professional investigators may perform some aspects of their search in person. This could include visiting corporate locations or public institutions to make information inquiries. It may involve interviewing witnesses or people with knowledge of the case’s details. It might involve visiting areas where assets are believed to be kept. In-person investigations are especially useful for building evidence.
- Legal and court applications – With the right court orders, investigators can open up additional investigative channels, attain authorization to review bank account activity, locate witnesses, and compel them to testify.
If a potential fraudster has hidden assets particularly well, the investigative team may secure an order to perform covert investigations, including mobile surveillance and leveraging a larger network of operatives to perform an asset investigation in other jurisdictions.
Asset Tracing Services are Vital for Locating and Securing Assets
Asset tracing services are a powerful form of litigation support. According to PwC research, about half of businesses experienced fraud in 2023. Most of those cases involved attempts to conceal the assets involved. Bankruptcy, divorce, probate and contract negotiations are all additional scenarios where assets may be concealed.
If you are involved in legal action where assets may be wrongfully hidden, speak to the experts at Evident Pros. We will help your organization develop an asset tracing strategy focused on identifying, securing and recovering assets quickly.
