The answer to these obstacles is creativity. The best legal and investigative minds are those that see beyond stale interpretations of the law. The question of whether money is lost forever will turn as much on the ingenuity of the case team as on the facts of the case itself.
A prudent assessment up front will help investors avoid throwing good money after bad.
Fraud has a face
Whatever the fraud, there are always individuals behind it, and others who may have crucial information.
Corporate investigators routinely gather information through interviews. Using tenacity, curiosity and emotional intelligence, interviewees can contextualise facts and reveal the real story behind otherwise opaque transactions. The paper trail can be misleading – people bring it to life.
In the most complex and high-value claims, interviewees identified by investigators often become key witnesses.
The final piece of the puzzle
Once a judgment is obtained, the final and usually most difficult part of recovery is securing payment. Fraudsters will do everything possible to conceal their assets.
Investigators play a vital role in identifying assets, proving ultimate ownership, and determining a path to recovery.
Where individuals can look for red flags
The mystique with which many investigators shroud themselves belies what they really do.
Many of the tools used by investigators are available to the average investor. Anyone can sift through information in public forums to identify red flags. There is often enough to discourage making a risky investment.
As an information source the public domain is richer than ever, if you know what to look for and where.
To determine if a company is viable, scrutinise its website and the press, its corporate records and social media.
See if the company has employees on LinkedIn and run a simple Google search to see if there is adverse chatter in blogs. You can even check to see if founders are connected on Facebook or Instagram.
Something as simple as an address can be illuminating.
If a company is incorporated in a jurisdiction that has a strong regulatory framework and disclosure obligations, that is a clue it is meeting certain standards. If it is incorporated somewhere else, it may warrant more scrutiny.
When to call in the pros
If a scam is complex or grand in scale, legal teams collaborating with investigators will be needed to assess facts and help you determine if you are a victim of a crime.
The right information can win or lose a case. The best investigators have the tools to collect that information and the knowledge of how to use it, thanks to their deep understanding of jurisdictional context and opportunities.
With time, the work of lawyers and corporate investigators will lead to regulatory tightening around financial products that have been abused by fraudsters as vulnerabilities are recognised and loopholes closed.
