On November 12, 1999, President Clinton signed the “Financial Services Modernization Act” into law, which made conducting bank account searches by asset search companies impermissible and a federal crime as you could no longer use false pretenses to obtain bank account information from either banks or bank customers, which is how bank account searches are conducted (and don’t let anyone tell you otherwise).  Please visit http://www.assetsearchesplus.com/bank-account-searches-are-they-permissible/ for a detailed description of the Act and certain limited exemptions.

The Board of Bar Overseers followed suit and said that any attorney who has a bank account search conducted on their behalf or has their client conduct a bank account search, will be vicariously liable for the Federal violations, and the applicable sanctions of the Boards. Then various Attorneys’ General offices throughout the United States also began filing complaints against asset search companies and their owners, individually, for invasion of privacy and unfair and deceptive business practices, and obtained large judgments across the country against them.

So guess what? No bank account searches can be conducted. Yes there are asset search companies that advertise that they can conduct bank account searches, but they are running a scam. Confront them with the above information and then listen for the dial tone.  As a side note and from a practical standpoint, even if bank account searches were permissible, they are almost physically impossible to conduct now with all the new banking regulations and security protocol that has been put into place since 911 so don’t waste your time, money or expose yourself to liability for trying.

That leads us to the important question, if I can’t conduct bank account searches, should I even bother to spend my client’s money and conduct an asset search?

The short answer is “absolutely.”  Even though you can’t locate bank accounts, an asset search can identify all other assets as well as liabilities. Assets that can be identified include, but are not limited to, real estate, deed transfers, automobiles, trucks, boats, watercraft, planes, trademarks, professional licenses and so forth. Asset searches also identify liabilities that help the attorney and client make a decision as to whether to proceed against the defendant subject and spend good money on bad. These liabilities include Federal and State tax liens, bankruptcies, liens and judgments including Uniform Commercial Code liens and other lawsuits.

An attorney, fiduciary, executor or personal representative has an obligation to satisfy their due diligence on behalf of their clients or subject in a number of circumstances. For example, if you are a personal injury attorney and your injured client has damages that may exceed the available insurance coverage, you have an obligation to determine the nature of the defendant’s assets to reach beyond the insurance and reach and apply the assets for the benefit of your client and you as well. Failure to do so or at least suggest to the client that they conduct the search could be a cause to put your malpractice carrier on notice. For as little as $ 185.00 per subject, a nationwide asset search can be conducted through a reputable company such as www.assetsearchesplus.com, for example, and the turnaround time is usually one to two days.

Asset searches also make an excellent discovery tool in a divorce to verify probate and family court financial statements or to discover entities that may be associated with your subject that may be holding assets such as trusts, limited partnerships or other corporate entities. The information contained therein also gives the attorney inside information to the subject and their assets for purposes of preparing interrogatories, production of documents requests, request for admissions and for use in a deposition or hearing.

A fiduciary or personal representative, executor or executrix, will most certainly want to conduct an asset search to satisfy their own due diligence to determine the nature of the decedent’s estate and the nature of any liabilities that may be present, before the final accounting is filed.

Creditors, collection agencies and in house corporate counsel who want to collect on outstanding debt need to start the process by conducting an asset search to not only determine the nature of debtor’s assets but also determine the nature of the debtor’s liabilities before they start spending thousands of dollars of their client’s money during the collection process.

Likewise, before buying or merging with a new business or hiring a key employee, it is always a good idea to conduct an asset search on an individual or corporate entity to properly determine the stability, assets, debt and other liabilities of the subject.

Choosing the Right Asset Search Company

Finally, when looking to conduct an asset search, it is important to carefully choose a qualified asset search company to assist you. The internet has become second nature for the majority, making it easy for someone to create a website that could potentially deceive you or your client and provide invaluable information. Therefore, it is important to research the company that you are using to make sure it will give you the results you are seeking.

The time that a company has been in business can tell you a lot about their experience. More likely than not, a company that has been in business for ten years or more will have already learned the do’s and don’ts regarding how the business functions, as opposed to a company that has just started. You should be sure to ask any potential asset search provider this question.

It is also important to choose a company that is knowledgeable in more than just providing the results, but giving you advice on how to interpret and implement them. Companies with attorneys on board can give you a basic roadmap as to how to go about using the report that you are given, whether it be to satisfy a judgment, recover unpaid child support or validate a party’s financial statement.

Convenience is another key point to consider. A company with an easy to use website, helpful customer service, and a short turnaround time is beneficial when trying to get results quickly. They should be able to accommodate you if you do not have access to a computer.

Finally, you should ask yourself these questions before choosing an asset search company:

1.) Does the company only use “legal” and reliable sources and methods to conduct their searches?
2.) Do they stand behind the quality of their work?
3.) Does all work remain confidential?
4.) Do they provide a professional looking report that you will be eager to read or share with your client?

If the company that you are considering meets these expectations, it is safe to say that you have made a great choice.

The most obvious use of an asset search is when a client is injured in an automobile accident or personal injury case. The attorney representing his clients must use due diligence to determine whether the person or entities responsible for the client’s injuries and damages have assets to attach if there is insufficient insurance coverage. An attorney’s failure to inform the client of their right to find and possibly go after assets to make the client whole, exposes the attorney and their firm to a potential malpractice complaint. Since asset searches only cost between $185.00- $300.00 on the average, it makes no sense not to conduct a search or at the very least, propose that a search be conducted to the client. If the client refuses, the attorney is covered and more important, if the search is conducted, assets may be discovered and attached thereby further compensating the client and their attorney.

2. Parties to a Divorce Action

The most important part of any divorce case is the discovery process. Knowing what to look for and knowing what to ask in interrogatories, document requests and depositions can make or break ones success in being able to properly care for oneself after a divorce. Even though parties must file a probate and family court financial statement, parties have selective amnesia sometimes. A thorough and properly conducted asset search will help verify financial statements and will ascertain assets omitted, or lead to the discovery of assets transferred, prior to the divorce filing. Prudent divorce attorneys regularly make conducting an asset search part of their family law discovery process for good reason.

3. Collection of a debt

In many states creditors are allowed to attach assets at the commencement of a law suit to put them in a better negotiation position during litigation and or settlement negotiation. Since discovery is not filed or answered until well into a case, conducting an asset search prior to filing a creditors lawsuit, will allow a plaintiff’s attorney to seize or tie up the assets at the very onset of their lawsuit. This puts the creditor in a superior bargaining position and may foster a faster more favorable outcome of their case.
Even more important, an asset search will provide both the assets and liabilities of the subject debtor. This allows the creditor to make a determination as to whether the collection process is financially viable. Nobody likes to throw good money after bad debt.

4. Corporate Hiring/ Mergers and Acquisitions

Nothing is probably more important to in-house counsel or hiring committees then corporate due diligence. Since job applicants often mistake or omit information in their applications, an asset and liability search often fills in holes and gives the company a good snap shot of who they are about to hire . Often asset searches will provide not only assets but liabilities such a prior lawsuits, criminal records, judgments, federal and state tax liens and sexual predator data. So true when merging with another company this same information can be obtained for a corporate entity at www.assetsearchesplus.com. For example, both individual and corporate asset searches can be conducted providing information on a subject for as little as $165.00 nationwide and includes, but is not limited to:

1. Real Estate;
2. Recent Deed Transfers;
3. Automobile;
4. Planes;
5. Watercraft;
6. Entities associated with the subject such as trusts, limited partnerships, and other corporations;
7. Professional licenses;
8. Trademarks;
9. Bankruptcies;
10. Judgments;
11. Uniform Commercial Code liens; and
12. Criminal records and Other Lawsuits.

Conclusion:

Do both yourself and your clients a favor and satisfy your due diligence and take advantage of the many benefits that an asset search provides. The turnaround time is usually 1-2 business days and most searches are e-mailed to you with explanatory reports so that they can be shared and understood by you and your clients.

Personal injury attorneys are the group most susceptible to a lawsuit by their clients if they fail to satisfy their due diligence by conducting an asset search on the defendant who caused harm such as with an auto accident or other tort. If the insurance coverage is insufficient to satisfy the damages in your case, the PI attorney has an obligation to his or her client to at least recommend that an asset search be conducted to determine if there are additional assets that the defendant owns that can be attached to satisfy and compensate the client for their injuries. The client must be informed as to what an asset search provides, how much it costs, and how it could be beneficial to their case.

Most asset searches cost between $ 165 to $ 350. At Asset Searches Plus, Inc. for example, www.assetsearchesplus.com , a nationwide asset search on an individual costs $ 185 per subject and a corporate asset search costs $ 165. If the client is unwilling to pay for the search, than the attorney is covered. But since there is usually a contingent fee agreement, the more the client can recover the more the attorney can be paid for their services…. so it makes sense to conduct a search as part of your routine practice.
Moreover, since most asset searches provide not only assets but also include the liabilities of your subject, the attorney and their client are able to discover at the outset of their case whether it would be cost effective to bring a lawsuit against the defendant. These liabilities include, but are not limited to; state and federal tax liens, bankruptcies, uniform commercial code liens, judgments and other lawsuits. Even if your subject has assets, their liabilities may far exceed the assets. So it pays to look before you leap.

And aside from locating a person’s real estate, recent deed transfers, automobiles, planes, watercraft, patents, trademarks and professional licenses, a thorough asset search will also provide what entities are associated with your subject that could also be holding assets. Entities such as trusts, limited partnerships, and corporations. More important, if title to the assets is held jointly with another party, their identity will be revealed as well.

So to with the wonderful world of divorce, divorce attorneys will tell you about the “divorce warning zone” which is the period of time of 6 months to one year before the divorce is filed. Due diligence and prudence suggest that an asset search be conducted on the divorcing spouse in order to take a snap shot of the assets at the outset of the case just in case assets disappear during the divorce. Likewise, once the party’s respective probate and family court financial statements are filed and received, they need to be verified by way of an asset search. Most important, an asset search will set the frame work for well drafted discovery. The same applies to collection attorneys or collection agencies who are trying to satisfy their due diligence in ensuring that their client’s debt can be secured and collected.

Finally, asset searches today can provide a wealth of information on a subject other than what their assets and liabilities are all about. They can provide information on whether your subject is in the armed services; who they are employed with; whether they are a director or officer of a publically traded company; civil or criminal records; driving records; family members and neighbors and the geo-economic surroundings of the subject. This information can be especially helpful the person responsible for hiring a new employee or when corporate due diligence is required before a possible merger.

These are just of a few of the many good reasons to conduct an asset search and in doing so, you have CYA and have added value to your client’s case while at the same time, eliminated potential headaches.

Short Answer:

As an attorney who has been conducting asset searches for other attorneys for over 20 years, I am repeatedly contacted or approached by lawyers and other professionals and asked whether it is permissible for a lawyer, individual, asset search company or private investigator to conduct bank, stock, bond or mutual fund account searches on a subject. The short answer is “no”.
Conducting a bank, stock, bond, or mutual fund search is considered to be an invasion of privacy and is also considered to be an unfair and deceptive business practice. More important, any company that claims to be capable of conducting bank account searches in this day and age, (and there are a number of them) is doing so by using false pretenses. Be forewarned also, if that was not enough, that the Board of Bar Overseers has also come out and stated that an attorney, who has a bank account search conducted on their behalf or on behalf of their client, could be held vicariously liable. Finally, the Attorney General’s offices, in a large number of states, have aggressively sought and obtained injunctions and heavy fines against individuals and asset search companies who conduct bank account searches.

So when you have to satisfy your “due diligence” on behalf of your clients by conducting an asset search, contact a reputable company who knows what is permissible and what is not. Here, at www.assetsearchesplus.com, we only use trained asset recovery attorneys to conduct asset searches. We provide our clients with access to each and every asset and liability of a subject that is permissible to obtain, in all 50 states, so that our clients can receive the necessary data to fully satisfy their due diligence within (1) to (3) business days.

Long Answer:

The long answer as to why you are no longer able to conduct a bank account search is that on November 12, 1999, President Clinton signed the Financial Services Modernization Act into law. Since then, using false pretenses to obtain bank account information, from either banks or bank customers, is considered a federal crime.

The law applies to all banks and financial institutions, including stock brokerage firms, insurance companies, loan companies, credit card issuers, and credit bureaus.
The Act applies to those persons who use false pretenses and any third party requesting the information when it is known, or should be known, that false pretenses will be used.
Certain limited exemptions do apply. Exempt parties include law enforcement agencies, financial institutions, insurance companies conducting claims related investigations, and state-licensed private investigators that are attempting to collect delinquent child support. However, in this case, private investigators must have a court order in hand authorizing the bank investigation.

When there is insufficient insurance coverage, both the attorney and client must decide weather to go after the defendant’s personal assets such as their real estate, boats, cars, planes and so forth. The way to determine the scope and nature of these assets, for attachment purposes, is to conduct an asset search. An attorney’s failure to adequately inform their client that they may be entitled to compensation above and beyond the defendant’s insurance coverage may be grounds for malpractice.
Therefore, the majority of personal injury attorney’s conduct and asset search if they believe that the insurance available is or may be insufficient. At the very least, the attorney will satisfy their due diligence by recommending that their client order and pay for an asset search and if they decline, then the loss of remuneration due to the client will be the client’s own doing and not that of their attorney.

Likewise, prudent Divorce attorneys have long used asset searches to verify financial statements submitted in a divorce or modification proceeding and have used them as an informative tool when conducting discovery. They realize that reluctant spouses tend to be more responsive in disclosing their assets when confronted with discovery tools such as interrogatories, production of document requests or deposition questions gleamed from detailed and specific information obtained in an asset search. They also realize that assets of a spouse can be concealed or hidden after a divorce is filed and that conducting an asset search before and after a divorce is filed is essential in prosecuting an action and protecting both their clients and their children’s best interest.
Therefore, timing can be very important as to when you should conduct an asset search. Some states even have laws allowing your attorney to attach a potential defendant’s assets at the very beginning of a case if you have a substantial likelihood of prevailing with your lawsuit. Moreover, litigating a case and using competent attorneys can be expensive, so you want to make sure there is a pot of gold at the end of the rainbow. If the defendant does not have sufficient assets or their liabilities exceed their assets, then a lawsuit is a waste of time and money. For usually less than a few hundred dollars, an asset search will reveal a subject’s assets at the outset of a case as well as disclose a subject’s liabilities such as with existing state and federal tax liens, uniform commercial code liens, bankruptcies and other pending lawsuits. For example, at Asset Searches Plus, Inc., www.assetsearchesplus.com , the cost of a nationwide asset search is only $ 185 and includes both assets and liabilities and the reports are forwarded to you in less than a few days. Compared with the cost of litigating a lawsuit which can run into the tens of thousands of dollars and take years to litigate, the cost of conducting an asset search is short money and well worth the time and effort.

Family law assets searches are a must...

If used properly and if conducted by a reputable asset search company, asset searches can be used as a valuable tool in divorce. Before you enter into discovery, or accept your adversary’s financial statement, shouldn’t you be certain that all assets are declared? What happens to an attorney who fails to inform the client that they could have conducted an asset search to uncover assets, either unidentified or incorrectly identified?

Most asset searches cost less than $300.00. At Asset Searches Plus, for example, a nationwide asset search costs $185.00 for an individual subject and $165.00 for a corporate entity. At the very least, shouldn’t the client be given the opportunity to pay for and conduct a search just in case there are additional assets or entities associated with the opposing party? If the client refuses, the attorney is protected. If the client agrees to conduct the search, then the attorney has satisfied their “due diligence” by conducting a nationwide asset search, which may very well reveal additional assets that can be divided. In addition, where the subject may be concealing assets, such as through family trusts, partnerships or the like, the asset search report will provide a road map for the attorney.

A thorough asset search also provides any liabilities associated with the subject, such as lawsuits, bankruptcies, state and federal tax liens and uniform commercial code filings. These searches usually take 1-3 days to conduct. Detailed reports are then emailed to the attorney to share with their client. Upon receipt, an informed decision can be made by counsel with how to proceed. Remember, “if there is nothing to obtain, there is nothing to gain.” If after reviewing the asset search report, it can be reasonably established that the opposing party has declared all assets, then the client can have peace of mind knowing that nothing has been inadvertently concealed.

Under most circumstances, asset searches verify the following:
(a) The subject’s full name and address;
(b) Driver’s license information;
(c) Real estate;
(d) Motor vehicles;
(e) Watercrafts;
(f) FAA certifications and aircrafts;
(g) Professional licenses;
(h) Bankruptcies;
(i) Liens and judgments;
(j) UCC filings;
(k) Corporate entities associated with the subject;
(l) Voter registration information;
(m) Sexual offenses;
(n) Employment information; and
(o) State and federal criminal records.

The only information that is usually needed from the attorney or client is the subject’s name and last known address, which can be filled out online or on an order form, which can be faxed and mailed to your office.

Finally, when choosing an asset search firm, make sure to ask the following questions:
1.) Does the firm have attorneys on staff that understand why you need the information and generate reports that are most useful for the family law attorney and their client?
2.) Do they only use “legal” and reliable sources and methods to conduct their searches?
3.) Does the firm stand behind the quality of their work?
4.) Does all work remain confidential?
5.) Does the firm provide a professional looking report that you will be eager to share with your client?

For additional information regarding our services, feel free to contact me at 1(800)290-1012 at ext.11, or at edamaral@assetsearchesplus.com or www.assetsearchesplus.com.

Sincerely,
Edward L. Amaral, Jr.
President
Asset Searches Plus, Inc.

ASSETS
Individual Assets

• The most significant asset that people own is usually their home. An asset search can provide you with real estate/deed transfer information, as well as mortgage information, to give you a better idea of the details and value of a subject’s home.
• Other important assets that can be identified include motor vehicles, watercraft, and aircraft.
• Assets may be held by a close associate, family trust, family member or company. An asset search can inform you of associated businesses and relatives of the subject to point you in the right direction.

Business Assets

• When assets are held under a corporate entity, an asset search can provide you with the above (mortgage information, real estate/deed transfer information, motor vehicle, watercraft, aircraft information)  as well as corporate officers, members, associated people, Dunn and Bradstreet records, and more.

LIABILITIES
Bankruptcy

• If the person or company that you are considering suing has filed for bankruptcy, you should be aware of this. An asset search can reveal bankruptcy information.

Civil Litigation

• If other civil litigations have been initiated against the person or company that you are thinking of suing, you may be last in the pile once your lawsuit has finally been settled. If an asset search uncovers this information, you may want to settle quickly, even if you will suffer a loss.

Judgments/Liens

• If the individual or company has been subject to recent judgments or lien filings, this may be a sign that they are already in danger, which may mean litigating is not worth the costs that will accrue. An asset search will provide you with a history of judgments, federal and state tax liens and encumbrances, and uniform commercial code liens, if applicable.

To conclude, litigation can be very expensive and is not worth the thousands of dollars that can potentially be spent if the person/business has nothing to attach. Other times, you or your client may be in the process of negotiating a settlement and you need to know the extent of the defendant’s assets. An asset search will assist you in both of these situations.
As attorneys ourselves, we understand that other attorneys need information quickly, affordably and of course, legally. Try us out today!
For additional information, please contact us at 1(800)290-1012, or at edamaral@assetsearchesplus.com or www.assetsearchesplus.com.

Therefore, it is imperative that an individual or business and their legal representatives conduct an asset search before filing a lawsuit. An asset search determines whether it is financially worthwhile to file a lawsuit. You want to ensure that the debtor has sufficient assets to satisfy the judgment so that you win the battle as well as the war. Second, attorneys can also gather critical information from an asset search to gain significant leverage during pre-litigation negotiations and post-litigation discovery. That leverage enables the plaintiff to make an appropriate demand or decide not to proceed forward with litigation. If there is nothing to gain, there is no need to invest exorbitant time and capital for a lawsuit.

Last but not least, if you ever decide to file a lawsuit, you have to determine who to sue. If both an individual and a business are involved in the claim, an asset search will be invaluable to determine whether to sue the business or the individual or both because the search will identify who has sufficient assets, and from whom you will have a higher likelihood of recovering your damages.

So what exactly will an asset search reveal? An asset search will reveal the assets and liabilities of an individual or a business. Common types of assets are include real estate and other personal property, such as motor vehicles, boats and aircraft, but may also include assets under other entities such as family trusts, limited liability companies or partnerships that may have been fraudulently transferred for the purpose of hiding assets and avoiding judgments.

Asset searches normally include the following on both individuals and businesses:

• Real estate and deed transfers
• Mortgage information (when available)
• Federal and state tax liens and encumbrances
• Uniform commercial code liens (UCC Filings)
• Motor vehicle and registration information
• Watercraft
• Aircraft
• FAA pilot license information
• Professional licenses held by subject
• Bankruptcies
• Judgments
• Associated businesses with subject
• Current addresses and phone numbers
• Voter registration information
• Concealed weapon permits
• A/K/A’s and D/B/A’s of the subject
• Criminal records
• Sexual offender records
• Neighbors and relatives

You should find an asset search company that will offer quick, easy and affordable solutions. Asset Search Plus, Inc., for example, can conduct a nation-wide search for as little as $185 per individual subject and only $165.00 for a corporation or business. The search result will be forwarded to you within one (1) to three (3) business days. Asset Searches Plus, Inc. can be contacted at 1-800-290-1012, info@assetseacheseplus.com or at www.assetsearchesplus.com.

Common types of assets that can be hidden or unlawfully transferred are cash, bonds, stocks, mutual funds, travelers’ checks, and other investment accounts such as variable annuities. Cash may also be converted into personal property, such as art, jewelry, collectibles, automobiles, boats, antiques. In rare circumstances, cash is used to purchase real property.

So what are the key red flags to watch out for when you suspect that your spouse is planning on or has already concealed his assets? If your spouse starts to act in an evasive manner or avoids answering your inquiries about family finances, or suddenly changes bank account passwords or completely denies your access to shared accounts, it’s time to consult with an attorney. Sometimes, your spouse may be forthcoming when an asset changes hands. When you discover its occurrence and confront him, but he or she may use a lot of seemingly logical excuses to ward off your suspicion. One or more of the following discoveries should get your attention: asset transferred to people very close to them, e.g. he or she places a valuable jewelry or investment certificate into the safety box in the name of their sister; asset sold to others without receiving equivalent value, e.g. he or she sells his brand new Lexus car to someone for only five thousand dollars; his or her strong effort to control the asset even after it changes hands, e.g. he or she transfers a large sum of money into the children’s trust accounts, yet endeavors to retain the control.

What should you do under the circumstances? Before you jump to conclusions, contact a professional asset search company to locate your spouse’s allegedly hidden assets. You can perform some preliminary work to verify your suspicion and you can turn to the following sources to gather information: (a) significant changes in the property value on tax returns for the previous three to five years, (b) irregularities in your spouse’s deposits and withdrawals in his checking and savings account, (c) sudden shift in certain life style which either becomes unreasonably lavish or ridiculously frugal, existence of any deferred salary, bonus or commissions. But overall, an asset search should be conducted.

In addition, your asset search company should be quick, easy and affordable to use. Asset Search Plus, for example, can conduct a nationwide asset search for $185.00 per subject and the search report is forwarded to you within one (1) to three (3) days.

Don’t risk your future financial stability and contact us today at 1(800)290-1012 or at info@assetsearchesplus.com or www.assetsearchplus.com.

If an heir feels that an executor is breaching their fiduciary duties in a way that does not comply with the wishes of the deceased, they may petition the probate court to have the person removed as executor.

In addition, an heir can conduct an asset search on the deceased to verify that the executor is not hiding or omitting information.

Likewise, and more important, an executor should also conduct an asset search to satisfy their due diligence. The cost of the search can usually be paid for by the estate. The asset search can then be shared with the heirs to confirm or disaffirm what assets the executor is responsible for disbursing.

Most asset searches cost less than $300.00. At Asset Searches Plus, Inc., for example, a comprehensive, nationwide asset search on a subject costs $185.00 and includes the following information:

(a) The subject’s full name and address;
(b) Real estate;
(c) Motor vehicles;
(d) Watercraft;
(e) FAA certifications and aircrafts;
(f) Professional licenses;
(g) Bankruptcies;
(h) Liens and judgments;
(i) UCC filings;
(j) Corporate entities associated with the subject;
(k) Trusts; and
(l) Employment information.

These searches usually take 1-3 days to conduct. Detailed reports are then emailed to you or your attorney. If after reviewing the asset search report, it can be reasonably established that all assets have been disclosed, then the heirs can have peace of mind knowing that no stone has been left unturned and the executor can also be at ease knowing that their duties have been fulfilled.

For additional information, please contact us at 1(800)290-1012, or at info@assetsearchesplus.com or www.assetsearchesplus.com.