| As certified fraud examiners (CFE), we all know | | | | Documentary Transfer Tax Stamp amount, which |
| the nuts and bolts of our respective areas of | | | | should be divided by the applicable factor. |
| specialty, and hopefully, we are all growing | | | | This yields a sales price for the property, which |
| professionally at an astounding pace. Crime does, | | | | should then be scrutinized by contacting a local |
| unfortunately, pay - just not for the criminal. | | | | realtor to verify the current market value. This |
| After conducting asset research for over 14 | | | | "thumbnail" market value determination would then |
| years for such demanding institutions as FDIC, | | | | be subtracted from the outstanding Deeds of |
| FSLIC, and RTC, as well as major hotels and | | | | Trust (encumbrances) for a net equity value of |
| casinos in the gaming industry, property | | | | the property. |
| management firms, and many of the nation's | | | | Additional research of real property ownership |
| larger law firms, one thing that has emerged is a | | | | comes in the form of updating the assessor's rolls |
| distinct lack of information - not about the type | | | | through the recorder's offices to determine if the |
| of items searched, but the depth and quality of | | | | subject's name has come into title to additional |
| other searches. In cutting to the chase, the | | | | parcels of property, subsequent to the "lien date" |
| following is the result of the compilation of asset | | | | of the assessor's records, which is in many |
| search guidelines, and should serve to assist in | | | | jurisdictions up to sixty to ninety days old. |
| setting at least a baseline standard for developing | | | | The searches in the recorder's offices should also |
| a viable domestic asset search strategy. | | | | identify recent transfers of ownership of an |
| Subject Identification | | | | individual's real property, wherein the ownership |
| Prior to beginning the acquisition of information on | | | | may have been transferred to a family member, |
| any subject of an asset search, the subject | | | | closely held corporation, or other entity. Based |
| should be properly identified. Studies have shown | | | | upon the guidelines established by the client, the |
| that as much as 30% of the American population | | | | searches can be permutated to include additional |
| uses undisclosed aliases and/or "akas" to conduct | | | | research on additional names developed during the |
| and transact various levels of personal and | | | | study, which the examiner may feel has a direct |
| professional business. This statistic does not take | | | | relationship to the subject of the report. It is |
| into account the existence of corporate, DBA and | | | | important to note that asset searches are usually |
| or partnership entity names, which are created to | | | | requested on specific names of individuals, and it |
| transact the various forms of business on behalf | | | | is an industry standard of practice to conduct the |
| of the principals of said entity. To properly identify | | | | research on the specific subject name. |
| a non-corporate subject, the following minimum | | | | Competent investigative agencies contact the |
| recommendations are made for non-law | | | | client in some way to disclose additional names |
| enforcement environments: Obtain credit reports | | | | discovered during the searches. |
| from the three major credit bureaus, per Fair | | | | Searches should also include information developed |
| Credit Reporting Act (FCRA) requirements. | | | | on real property assets jointly held in the name of |
| However, make sure that obtaining the reports is | | | | the husband and wife. This information is usually |
| in compliance with permissible purposes as defined | | | | indexed by virtue of the husband's name, or the |
| in Public Law 91- 508, Title VI (FCRA), to avoid | | | | first name that appears on the conveying deed. |
| tainting your pursuit should the matter ever be | | | | It is important to understand that an asset search |
| litigated. Remember, in the context of this | | | | does not automatically search property held in the |
| discussion, we are focused on asset searches as | | | | name of a wife unless the asset search is |
| recovery medium, and the basic assumption is | | | | specifically ordered on the wife's name. If so, the |
| that the asset search has already been | | | | wife's name would then be included as a primary |
| determined to be sanctionable. This could be | | | | search name (parameter), and assets held in the |
| determined, for example, by a loan in default, a | | | | wife's name would then be covered. Quite simply, |
| judgment that has been rendered, or a court | | | | an asset search on a husband should usually also |
| order obtained for the release of the credit | | | | reveal information on spousal assets held jointly, |
| information in cases that are not clearly defined | | | | but not necessarily include assets held by the wife |
| under the FCRA. | | | | individually or as sole owner, or under different |
| Remember this simple guideline: credit reports are | | | | name styles such as aliases or maiden names. |
| legal post-judgment, for purposes of collection, | | | | Vehicle Searches: Searches should be conducted |
| and/or where consent has been given | | | | of the applicable states Department of Motor |
| somewhere in the stream of the creditor/debtor | | | | Vehicles to identify all vehicles owned under the |
| relationship. In the case of a receivership institution | | | | name and address given to the state repository |
| (i.e., where a director is being scrutinized for | | | | for search purposes. Several states do not |
| alleged conversion of assets), consent may also | | | | provide this service, as the tax registration |
| have been given for a credit history during | | | | responsibility for vehicular ownership rests with a |
| pre-employment evaluation or as a policy-based | | | | county or parish jurisdiction. Where states will not |
| condition of employment. | | | | provide this information, the applicable jurisdiction |
| This is referred to as "extended consent," and | | | | or jurisdictions should be researched to determine |
| constitutes valid use, especially in matters where | | | | if vehicles are owned by the name given as |
| a criminal investigation is under way, and where | | | | primary search parameter. It is also important to |
| the conversion of assets is factually alleged as the | | | | understand that most assets search requests are |
| result of a forensic audit or proven by admission. | | | | not only based upon single name searches, but |
| Be careful, though, as "extended consent" from | | | | usually single jurisdiction searches as well. |
| the employment perspective is still a gray area | | | | Some examiners may feel justified in providing |
| under the law. The following two items are | | | | additional "over-the-county-line" information in |
| available from credit bureaus and their | | | | order to bolster the information developed |
| sub-vendors but have less coverage extended to | | | | without an additional asset search. However, single |
| them under the FCRA, yet the "FCRA compliance | | | | county or parish jurisdictions should be expected |
| attitude" should be used when accessing them: | | | | as an industry standard. Analyze credit reports to |
| * Obtain social security traces from the three | | | | determine if current outstanding) and/or previous |
| major credit bureaus. | | | | loans may have existed, linking this type of asset |
| * Obtain address update/credit report header | | | | to the subject. Many times vehicular, vessel, and |
| information from the three major credit bureaus. | | | | aircraft assets are not identified through standard |
| * Obtain voter registration information for the | | | | search parameters, but are identified if the |
| applicable jurisdiction germane to the primary, or | | | | subject may have the asset registered in a |
| most recent, residence of the subject. Some | | | | different jurisdiction; if the asset may be |
| states have compiled voter data through private | | | | registered under different name; or if the subject |
| repositories, which should be checked for | | | | may be a guarantor on the loan. |
| movement. | | | | Vessel Ownership: There are three possible forms |
| Match the information obtained through the | | | | of accessing vessel ownership information. The |
| independent sources to the information presented | | | | first is on a state-by-state basis at the |
| by the candidate in the form of the credit | | | | Departments of Motor Vehicles. The second is at |
| application withthe institution, and/or the | | | | the county or parish level. The third is a search of |
| information developed independently by the | | | | the U.S. Coast Guard's Watercraft Index, a |
| institution in the initial credit qualification process. | | | | nationwide repository of registered vessels over |
| Many other methods of identification exist, but | | | | a certain length. Depending upon the location of |
| the above represents the very least that should | | | | the asset search to be conducted, one or all of |
| be done. The reason for obtaining the information | | | | these methods should be utilized. |
| from all three bureaus, instead of only one, is to | | | | Aircraft Ownership: Other than by "intelligence" |
| develop any alias and/or aka data, as well as | | | | information which may have been submitted to |
| current addresses (not specified), and/or any | | | | the institution at the outset of the credit |
| additional addresses that may provide venue data. | | | | qualification process, the only method of |
| This will assist the asset searcher in determining | | | | developing aircraft registration information is to |
| whether to advise the client to proceed with | | | | perform an FAA |
| asset discovery in additional areas unknown to the | | | | Airman's Search to determine if an FAA Pilot's |
| client at the time the asset search was | | | | license has been issued, and/or if an individual has |
| requested. | | | | an aircraft registered in his or her name within the |
| Address verifications are usually difficult without a | | | | Federal Aviation Administration's files. As with the |
| physical inspection of the address in question, | | | | vessel ownership search through the |
| including a visual identification of the subject | | | | U.S. Coast Guard Watercraft registration, there is |
| entering and/or leaving the address. Address | | | | only one national root repository that makes this |
| information that is cross-referenced and verifiable | | | | service available. The service is resold through |
| through the major credit bureau repositories is | | | | other database repositories, yet it is advised that |
| usually presented in an asset search, and in most | | | | the "root" repository be utilized in order to |
| cases is very reliable. | | | | minimize data transfer/loss from vendor to |
| To discover the current telephone number of the | | | | vendor. |
| subject, methods available to the fraud examiner | | | | Banking Information: Bank account searches may |
| include nationwide telephone directories, criss-cross | | | | be the world's "second-oldest profession." There is |
| directories, directory assistance contact, and | | | | no specific way to access bank account |
| attempts at contact existing telephone numbers | | | | information, other than by a multitude of artistic |
| known by the client. There are other methods of | | | | pursuits including the development of information |
| telephone number development available. | | | | within a consumer's credit history; director contact |
| However, these methods should not be utilized by | | | | with a banking institution; the use of sources in |
| a CFE in order to avoid tainting the legality of the | | | | the U.S. Federal Reserve Clearinghouse System; |
| pursuit, in the even that litigation is ultimate | | | | or by sources and contacts developed by the |
| undertaken. | | | | fraud examiner with local, state, or national |
| Assets Determination | | | | banking institutions. |
| Assets determination usually constitutes an | | | | This is truly the "art and science' of an asset |
| integration of certain liability data to offset the | | | | search, in that the ability to successfully identify |
| assets "worth" in order to arrive at a net equity | | | | banks rests heavily with the fraud examiner's |
| position. This is especially true in identifying and | | | | prowess in this arena. |
| analyzing real property assets. There are multiple | | | | The standard guidelines for bank account |
| forms of asset determination, which are described | | | | searches are "exact name basis only" searches, |
| as follows: Real | | | | with less emphasis placed on jurisdictional lines, |
| Property Ownership: A search should be | | | | since most bank account searches are developed |
| conducted of the applicable county jurisdiction. The | | | | via intelligence leads. In many instances, an asset |
| exception is in California where a statewide | | | | search will refer "no record found" to a banking |
| assessor's index is available, usually through the | | | | institution under an exact subject name. |
| "lien date" of the prior year. This repository is | | | | The subject's name may appear as a signatory |
| made available through a private company, and is | | | | on an alternate account, possibly under the name |
| in no way sanctioned by any public jurisdiction. For | | | | of a disclosed or undisclosed entity, or as a |
| traditional searches throughout the rest of the | | | | signatory on an account held under the name of |
| U.S., per jurisdiction research is conducted at the | | | | another. Bank accounts will not usually be disclosed |
| assessor's office to determine if the name exists | | | | in this fashion. Unauthorized information pertaining |
| on the assessor's roll, and/or if the known | | | | to a no searched consumer could compromise |
| property (address) crosses-verifies to the | | | | that person's privacy under federal privacy laws, |
| suspect owner. | | | | the FCRA and the CCPA, as well as many other |
| A search of the applicable jurisdiction's Recorder's | | | | statutes. |
| Grantee/Grantor index (or general index as it | | | | It is safe to say that most agencies are quick to |
| may also be known) is then undertaken to | | | | obtain at least some banking information. This |
| determine if the property is still vested to the | | | | should rest with the successful Write of Execution |
| subject, and if any open Deeds of Trust and | | | | language, constructed by counsel as served upon |
| other liens exist which identify liabilities against the | | | | the institution's regional administrative and/or |
| property. The search in the recorder's venue | | | | corporate offices (for examples send a request |
| should also identify (in jurisdictions where this is | | | | to ). |
| possible) the | | | | |