Asset Recovery

Crystal Vantage was founded on expertise in asset recovery. We believe that any asset recovery investigation must be grounded in a highly commercial, pragmatic and granular understanding of how assets are to be recovered worldwide, not only found. Our success in this space stems from a unique combination of detailed legal enforcement knowledge globally; shrewd assessments of counterparties and viable routes to induce recovery; and unparalleled tenacity and creativity of investigation and unearthing of assets.

The single biggest determinant of the success of an asset recovery campaign is strategy. Frequently, even the best investigators go after the wrong assets or parties, generating illusive tactical findings or pyrrhic victories, but encountering issues in enforcement that ultimately leave the client no closer to recovering funds. Our approach places the client outcome at the centre of our investigation. Our point of departure is well-thought through scope of work that searches for assets with a credible gameplan that culminates in financial recovery. Our work focusses on these areas:

Our Services Include

Post-judgment/award enforcement

We help parties with final judgments and awards to collect on their debt. This includes asset tracing into named defendants. Frequently, however, given the passage of time and events, enforcement can be more complex. Our post-judgment work often looks at unwinding asset dissipation, evidencing proxy arrangements designed to conceal debtor ownership of assets from creditors, and exploring other solvent third parties from whom the creditor may be able to collect. Our work supports civil and criminal enforcement strategies.

Pre-action asset investigation

We identify the asset positions of potential defendants prior to the launch of legal proceedings. This ensures that defendants are viable collection targets, and that pre-action injunctions (e.g. worldwide freezing orders) can be obtained to preserve wealth. We focus efforts in jurisdictions amenable to enforcement of our client’s debt.

Asset tracing into individuals typically focuses on their property, investments and securities, bank accounts, valuable companies, and luxury assets such as planes, yachts, boats, jewellery, watches and cryptocurrency.
Investigations into corporations frequently centre on balance sheet assets, financials, trade receivables and intellectual property.
When pursuing sovereigns, we often focus on commodities sales, payment flows, foreign state-owned enterprises and real estate, sovereign debt markets, and commercial receivables such as royalties.

Disclosure

An important component of our work is locating targets for disclosure. This may include banks, accountants, service providers, telecommunications networks, third parties, and other pivotal individuals. We frequently support Norwich Pharmacal applications in England and common law jurisdictions, particularly offshore, and USC §1782 applications, including for subpoenas and intermediary bank discovery (IBD) to unearth USD transactions worldwide. We work hand-in-glove with lawyers to analyse the fruits of disclosure and follow the trail to assets that can be intercepted and recovered.

Leverage and settlement building

The majority of successful asset recovery campaigns end in settlement. We unearth information and implement intelligent action that changes a debtor’s calculus to settle a debt. In many cases, this can be non-asset related. Approaches can include: interference with a debtor’s current commercial activities; notifying the debtor’s other counterparties, business associates, service providers and financial institutions of their wrongdoing; preparing criminal and regulatory complaints; discreet lobbying efforts; and generating media and public attention. In sovereign cases, political solutions may be appropriate. Effective and enduring leverage and pressure are often a key to inducing settlement.

Debt monetisation

Embarking on the recovery of a significant debt can be a complex and resource-intensive endeavour, fraught with risks and uncertainties. Claimants and creditors may benefit from third party funding to finance recovery action, or may wish to sell their debt at a discount. We help parties to raise third party funding into their recovery campaign, and/or to monetise their debt outright. As asset recovery specialists, we are experienced at preparing cases for funding/sale, anticipating the requirements of specialist investors, and raising finance from our network 60+ litigation funds, hedge funds, private equity, special situations funds, and private investors (see Investment in Claims & Debt Monetisation).

Case management

We work directly with individuals, corporations and governments to project manage the asset recovery process. We craft the strategy, charting a roadmap to recovery, and assemble the requisite power teams to deliver, including lawyers and other experts in the relevant jurisdictions. We oversee the project, ensuring delivery of each component, taking the case through to client recovery of funds (see Case Management).

Our Work

Case Studies

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Banking fraud recovery

We supported the victims of a major banking fraud operation, including tracing funds through accounts held by false identities with burner addresses, to arrive at the perpetrators overseas. Our work helped to secure the client full recovery of their losses.
Sovereign pursuit of proceeds of corruption

We were engaged by a sovereign state seeking to claw back significant sums embezzled by associates of the previous regime. We prioritised targets based on prospects of recovery, legal basis, and jurisdiction. We unearthed evidence of their concealed assets and misappropriated wealth, including bank accounts in major offshore centres. We devised a strategy to (a) discreetly discover the flow of payments to unveil the network of accounts and structures used to launder the wealth, and (b) freeze accounts, – critically, without tipping off the adversaries. Our work was carried out in close conjunction with specialist legal teams in relevant jurisdictions.
Recalcitrant debtor in the Gulf

We assisted the victim of a significant USD debt default to pursue a recalcitrant Eurasian debtor sheltering in the Gulf. Our work involved locating and lifestyling the debtor; unravelling the holding structure for his wealth, including assets placed on trust with proxies and SPVs created to appear unrelated to the debtor; and generating a pressure strategy for recovery. This involved the hybrid use of asset freezes; restrictions on travel and freedom to operate; political leverage; and media and public pressure. Our efforts helped to bring about an advantageous conclusion to the situation.
Pursuit of cryptocurrency outfit

Mapping out the concealed assets of an Eastern European cryptocurrency outfit and its principals, who had defrauded our client of c.$20 million. Our work identified the entities through which the funds were laundered, and the assets acquired with the proceeds. This intelligence ultimately informed the client’s recovery efforts.