THE ANALYST
Futurum Risk
A leader in risk, business intelligence & investigations across Asia Pacific.
Welcome to The Analyst
A monthly newsletter from Futurum Asia!
Our newsletter is an opportunity to keep you informed on the latest research, news, and tips and tricks in the investigative world.
In this month’s edition we are covering these Key Topics:
A Message from the Managing Director (APAC)
Welcome to our first edition issue of the Futurum Asia Newsletter.
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We look forward to offering key insights into our risk and intelligence world, as well as highlighting case studies from our global team of intelligence and risk experts.
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This debut issue delves into the intricacies of how we support law firms and organisations with our research for dispute resolution and civil litigation claims.
Mending Defences
It has been well-established that various types of scams and deception have been on the rise in Asia’s main cities for several years. According to the Hong Kong Police, common types of deception cases in Hong Kong include telephone deception, online romance scams, email scams, investment fraud and financial intermediaries’ fraud.
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Key Facts:
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Staying vigilant has never been more important, but even so, scammers have never been more?technologically savvy.
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It is not always simple to separate what is real from what is a scam. So, what are victims to do?
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Reporting the scam to the police is crucial to catching scammers and protecting future potential victims, but criminal investigation channels do not ensure your funds are protected or that you can recoup lost funds as they can pass through multiple jurisdictions. Recovering stolen funds requires legal action through the civil courts process. Unfortunately, even when you can identify the scammer, recovering stolen funds is not so simple.
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Often the scammer, the primary recipient of the funds, has transferred the stolen money to a secondary recipient. This is further complicated by ‘mule accounts’. Recovering money from a secondary recipient is challenging for two reasons:
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The victim will be able to claim a proprietary right over the fraudulently obtained funds traceable to the secondary recipient, and the victim will have prima facie claim thereto.
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However, the recipient can defend this claim on one of two bases.
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1. The Bona Fide Purchaser Defence
It may be the case that the scammer transferred stolen funds to a secondary recipient in exchange for goods or services, such as a new car. In this case, the secondary recipient will be entitled to keep the funds. This defence can be defeated by showing that the recipient had prior notice that a proprietary claim to the funds existed.
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Suppose a reasonable person in the position of the recipient, based on the facts available to them, would have appreciated that such a proprietary right probably existed. In that case, the defence will be defeated. If a reasonable person in the position of the recipient would have made enquiries revealing the existence of such a proprietary right, then the defence would likewise be defeated.
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Defeat the Defence
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This defence can be defeated by proving that any of the elements are not satisfied. One of the easiest ways to defeat it is by showing a connection between the scammer and the secondary recipient. If the recipient was aware that the funds were stolen, he or she was not acting in a bona fide (good faith) manner and will not be able to rely on the bona fide purchaser defence.
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Furthermore, if the scammer is known to the recipient, and the two have an ongoing relationship, it is more probable than not that the recipient knew the funds were stolen.
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Alternatively, it is more probable than not that a reasonable person in the position of the recipient should have known a proprietary right existed to the funds in question or should have made enquiries that would have revealed the existence of such a right.
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At Futurum Asia, our advanced web scrapers, data aggregators and link analysis software can reveal connections between individuals and entities that aren’t apparent on the surface. While our sources may be difficult to find, they are all publicly available and no privacy laws are breached, which means all information gathered is admissible in court.
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2. The Change of Position Defence
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Where an innocent recipient has received the funds in good faith, and as a result of receiving those funds, has experienced a change in position, the recipient will be entitled to keep the funds if returning them to the scam victim would be inequitable in the circumstances.
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Defeat the Defence
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Like the bona fide purchaser defence, if it can be shown that the recipient knew the funds were stolen, the recipient cannot be said to have received the funds in good faith. Identifying the connection or relationship between the scammer and the recipient can therefore be vital to defeating both defences.
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In the case of the change of position defence, the defence can be defeated by showing that the receipt of funds did not cause the change in the recipient’s position. A lifestyle audit can reveal the circumstances of the recipient before and after receiving the funds. If the recipient’s circumstances were substantially the same, then no change in position can be attributed to receiving the funds.
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Futurum Asia’s systems and analysts can uncover a wealth of information that can indicate the lifestyle a person leads or has led in the past. This information may include property and vehicle ownership, vacations taken, education history, work history, purchasing habits and much more.
Being a victim of a scam is an incredibly emotional and stressful experience.
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Unfortunately, it is not always possible to get all of your money back, but having the right partners can increase your chances. Futurum Asia provides a wide variety of services for victims of scams, including person tracing, to find the scammer, and asset tracing, to find the money.
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Where a matter goes to court, our software tools and researchers can uncover evidence pivotal to succeeding in court. The evidence we obtain is admissible in court.
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Written by: Michaela Stembridge (Lead Research Analyst at Futurum Asia, and Previous Practising Attorney in South Africa specialising in Class Action and Civil Litigation)
FUN FACT.
The Sulu Arbitration Scam: The Biggest Attempted Fraud Case Against Malaysia Ever Perpetrated.
领英推荐
Case Study: Fraudsters Keep Horsing Around
At Futurum Asia, we encounter a wide array of cases daily.
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From?missing persons?to?conducting employee background checks, our team works on all kinds of cases day-to-day. However, the most frequent request we receive from clients is for?asset tracing.
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Asset tracing demands experience, skill, and powerful tools to uncover hidden assets such as offshore companies or properties. People conceal money in various assets for numerous reasons—corporate fraud, litigation avoidance, or even hiding from a spouse. Recently, one asset has notably stood out in our traces:?HORSES.
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Over the past 12 months, our analysis team has observed a significant rise in individuals hiding money in dressage and racehorses. This trend isn't entirely surprising given the high value of these animals. A good racehorse can be worth around ￡300,000, with the most expensive racehorse ever sold fetching ￡53.7 million. While dressage horses aren't quite as pricey, they can still reach values up to ￡100,000, with a record of around ￡10 million.?
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Why Horses? Why Now?
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Several factors seem to have contributed to this trend of equine asset concealment, including:
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These are some of the reasons for the steady rise in horses being used to hide assets around the world.?
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Our Approach at Futurum Asia:
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Understanding the modern horse market is crucial—particularly the expensive racehorses in regions like Hong Kong, Singapore, Dubai, and the United Kingdom. People and companies can purchase a horse outright or buy shares, contributing to its upkeep and receiving a portion of any winnings.
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In cases where money is hidden in horses, we often find these animals are owned by companies of which the individual is the ultimate beneficial owner. There might be layers of separation between the owner and the horse, but our task at Futurum is to unravel these connections. Clients use our investigation findings to make claims against these assets or have them frozen pending judgement.
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Advanced Techniques for Asset Tracing:
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At Futurum Asia, we use?sophisticated techniques to dismantle these complex ownership structures. Our experience in obtaining and analysing company registration documents from around the world is pivotal. Sometimes, more arrogant criminals will hide assets in their own names and attend flashy winner’s circle parties, making it easier for us to identify and seize their assets.
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While fraudsters keep horsing around, we at Futurum Asia remain vigilant and equipped to uncover and reclaim hidden assets for our clients. Our expertise and innovative approaches ensure that we stay ahead of the curve, and no matter where assets are hidden, we can find them.
Tips and Tricks:
Top 8 Places to Discover Hidden Assets
Are you facing difficulties collecting on a judgement?
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While the notion of hiding assets may seem dramatic, it's a significant concern in cases such as divorce and civil litigation. Not only does concealing assets undervalue the person’s wealth, but it's also an illegal act.
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People have various avenues to conceal their assets, making it challenging to prove their existence. However, with determination and the right tools, tracking them down is achievable.
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Here are the top 8 common places to uncover a person’s hidden assets:
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#1: Hidden Bank Accounts
Hidden bank accounts rank among the most prevalent types of concealed assets. Bank account balances not only reveal the person’s wealth but also provide insights into additional sources of hidden assets. Some offshore jurisdictions are particularly tricky to obtain information from so we always need to look at the wider evidential trail.
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#2: Quit Claim Deeds
A person might transfer property ownership through quitclaim deeds to create a facade of non-ownership. Monitoring insurance and tax payments on property can expose attempts to conceal property under someone else's name.
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#3: Corporate Records
Assets are often concealed under corporations to avoid direct association.?Through complex structures and funds to shield the Ultimate Beneficial Owners.
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#4: Insurance Policies
Individuals may overpay on insurance policies, particularly in divorce cases, to receive refunds later or to evade judgments. It's crucial to examine all insurance policies to ensure funds are not deceptively allocated.
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#5: Tax Overpayment
Similar to insurance overpayments, tax overpayments allow individuals to control funds, preventing a person from accessing them.
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#6: Properties
Buying property leaves a trace however in a lot of jurisdictions you cannot perform blanket property or land searches, you first need to know an address or location. However, there are ways to identify the location through the ‘breadcrumbs’ left behind.
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#7: Trust
The Trust Instrument can hold key information, however obtaining that is the difficult part. The first piece of intelligence we need to find is the existence of a Trust.
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#8: Vehicles of all types and Art
Vehicle titles can be transferred to others to avoid ownership records.?Along with Art that can be purchased as a company investment or through other means then held in storage.
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This is by no means an exhaustive list, or even at Futurum Asia do we state we can find all of these. The?key to discovery is building a Lifestyle and Asset Picture?which may lead you to the Pot of Gold.
Get in touch with us.
Have burning questions or eager to explore further? Don't hesitate to reach out to us! Whether you're curious about our latest insights or seeking personalised guidance, we're here to assist you every step of the way. Send us your inquiries or schedule a consultation with Futurum Asia.
Stay tuned for more updates from Futurum Asia