Case Study – Asset Search on Behalf of a Multi-National Energy Corporation
A multinational energy corporation retained Kroll to conduct an asset search, in anticipation of an international arbitration award in its favor following a dispute with a Latin American government and its state-controlled oil monopoly. Our team sought to identify non-immune assets that were demonstrably and directly controlled by the state corporation in jurisdictions that we (and the client’s attorneys) believed would recognize the arbitration award and grant attachment orders. We identified corporate assets (subsidiaries and joint ventures), fixed assets, receivables from customers, and oil tankers that belonged to the subject entities. Our investigation helped the client’s counsel secure pre-award attachment orders in several jurisdictions, thereby preserving several valuable assets for possible recovery.
Case Study – Identification of Non-Immune, Seizable Assets
Kroll was retained by a multinational company to identify non-immune seizable assets belonging to a sovereign country. The company has been awarded over $100 million in arbitration. To date, Kroll has identified assets worth several billion dollars that can be classified as non-immune. The assets are located in several different countries in the form of cash in bank accounts, commercial businesses, properties and receivables.
Case Study – Investigating a US$150 Million Fraud
A Moscow-based financial institution and its external counsel approached Kroll regarding an apparent $150 million loss in its London-based fixed-income trading team. We conducted an onsite financial investigation to establish whether the bank had suffered a fraud; identify potential wrongdoers and beneficiaries; and provide forensic evidence to help initiate legal proceedings in London to freeze assets and obtain disclosure.
Over a two-year period, we worked with the client and their legal advisors to obtain further disclosure to trace the proceeds of the fraud and to identify further assets that could be subject to recovery. We also utilized our international network to identify assets purchased with the proceeds of the fraud through investigative research and local source inquiries in Europe, the Middle East, Asia, and North and South America. The assets identified included high-end property in London and Switzerland, classic cars, shares, diamonds, antiques and other chattels.
Our findings were used to support a civil fraud claim filed in the UK and additional proceedings initiated in several other jurisdictions. The judgment found in favor of the client and has resulted in the recovery of a significant portion of the amount sought.
Case Study – FPAT Asset Profile Overview
A large corporate client approached Kroll with concerns surrounding the actions of a former senior executive. The executive had been the owner of a company that was acquired by our client, but that company had significantly underperformed since acquisition, with the executive departing. The client was considering entering civil litigation, with potential claims against the executive over lack of disclosure during the due diligence process.
Kroll utilized the FPAT to build a holistic understanding of their asset profile, in particular, whether any resulting claim would result in recoveries. We were able to identify a number of property assets recently acquired by the executive and his immediate family, as well as planned developments to these properties which would increase their value. The matter was subsequently referred for litigation.
