Business Asset Search in Anticipation of Litigation or Settlement

Hudson Intelligence conducts business asset searches on behalf of law firms, insurers, third-party-administrators, corporations and private litigants seeking to pursue claims against a company.

The scope of a business asset search during the pre-litigation stage or settlement negotiations generally includes the following areas of assets and liabilities:

• Real Property
  (Current Ownership and Mortgage Financing)

• Identification of Parent Company, Subsidiaries, Affiliates and Principals

• Verification and Assessment of Active Operations

• Vehicles, Airplanes and Financed Equipment

• Intangible Assets and Intellectual Property

• Corporate Debt Profile
  (Bankruptcies, Litigation, Liens, Judgments, Foreclosures and Collection Suits)

Investigation may also be pursued to identify corporate securities filings and related financial data, depending on the size and scale of the subject company.

Insights on current holdings, debt behavior, and financial background are combined to create a balanced financial profile. These findings are presented in a final report with supporting documents.

Personal Asset Search of Business Owners

If the primary focus of the investigation is a small business or privately held corporation, financial evaluation of company principals can be a critical part of the overall assessment, particularly when the business owners are potential co-defendants in the pending lawsuit.

Pre-litigation asset searches on small and medium-sized businesses will generally include investigation of personal assets of the principals. The investigation will identify real property, business interests, family trusts, personal debts and liabilities.

Financial Account Searches

In most cases, we recommend searches for business bank accounts should be postponed until after judgment is awarded. This is typically the most cost-effective approach for clients. An well-informed “go/no-go” decision on whether to proceed with litigation can be based on a financial profile that covers real property, business activities, debts and liabilities. For this reason, business bank account searches are typically not included in the standard scope of pre-litigation or settlement-stage asset investigations.

However, for large-dollar claims, or if there are reasonable grounds to believe the company and its principals might fraudulently transfer funds to other parties or outside the jurisdiction of the court (e.g., offshore), then it may be appropriate to proceed with financial account searches as soon as possible.

For example, when a civil plaintiff or federal receiver plans to petition the court to freeze the defendant’s assets, then financial accounts must first be located before prejudgment writs of attachment, preliminary injunctions and/or temporary restraining orders can be made effective. These considerations are common in cases of investment fraud and Ponzi schemes.

Consult an Investigator

If you would like to discuss an asset search for pre-litigation or settlement evaluation, please complete the form below. You can also speak with an investigator by contacting our offices at 800-580-8755.