The identification and analysis of significant assets can radically alter a legal strategy and the ultimate resolution of a case. Below we outline just one example of how proof of assets and overall financial health upended a defendant’s key legal argument and won the day for our client.
The Problem
Our client represented a financial services firm that collapsed in the 2008 financial crisis. In subsequent litigation against several former executives, the trustee of the firm’s estate sought to recover multi-million dollar bonuses arguing they had been improper. One of the defendants argued they no longer had the funds to return their bonus payment, and our client sought to better understand the former executive’s true financial picture.
Our Solution
We began by reviewing property records, motor vehicle registrations, news articles and social media content to learn more about the former executive’s assets, liabilities and lifestyle. We quickly identified three luxury properties owned by the subject and his wife, which had a combined market value of nearly $10 million. Only one of these properties was encumbered by a mortgage. The couple’s primary home, which they purchased for nearly $3 million, underwent a multi-year renovation that “cost three times as much” as the couple initially planned, according to an interview our subject’s wife gave with a local publication. This article also detailed some of the lavish finishes the couple selected for the home, including an oven that retailed for more than $20,000 and handcrafted wall sconces imported from Europe.
Our research also identified two vehicles and a motorcycle registered to our subject, which had a combined value of more than $90,000, as well as a series of articles outlining significant financial donations our subject had made to philanthropic organizations. In addition, the subject’s daughters had recently graduated from a private high school where tuition exceeded $40,000 per year. One of the subject’s daughters posted frequently on social media regarding her travel to destinations such as Europe and the Caribbean and her stays in luxury properties that charged several thousands of dollars per night. She often posted content featuring herself with high-end merchandise, such as Paravel luggage and accessories by luxury designers Hermès, Yves Saint Laurent and Staud. We also identified several business interests for our subject, and documents indicating he had privately lent money to a local restaurateur in recent years.
The Outcome
Armed with our intelligence, the plaintiff—through counsel—successfully argued that the former executive’s defense of inadequate funds was moot given the identification of numerous, significant assets and minimal prior debts.