Financial Asset Investigations
Sometimes it really helps to know how much someone is worth financially, i.e. doing an asset search. Maybe you are considering doing business with someone, or maybe you are getting romantically involved with him/her.
Whatever the reason, you’ll be glad to know that, thanks to the Web, it’s now easier than ever to get an accurate gauge of someone’s net worth. Asset search is a bit of a complicated topic, but I can get to the most important points in this short guide; either way, you’ll learn enough to do some informed research. If you want to go beyond what I’m telling you here, you’ll probably need a good IP, or perhaps if the stakes are high (such as in a major court case) a forensic accountant.
First, let me stress that there is nothing unethical about conducting an asset investigation, as long as you follow the rules. You may not, for example, use pretexts to determine how much money someone has in a bank or brokerage account (ie, pretend to be the account holder over the phone). This is illegal. It is important to respect your subject’s privacy and state and federal privacy laws, such as the Fair Credit Reporting Act.
Ok, so how do you go about performing an asset search? Your first step is to positively identify your topic. Since you will be accessing public records and other database sources, it is vital that you know the person’s basic identifiers, that is, their name (with middle name or initial) and date of birth, at a minimum. It is often helpful to know the person’s social security number and address history (one or more of their previous addresses).
Some sources of date of birth are civil and criminal records (at the local county courthouse) and voter registration records (also at the courthouse). Sometimes you can get the information you need by making a courteous and patient call to the county clerk’s office. For a list of these offices across the country with phone numbers and website addresses, visit this site: [http://backgroundcheckgateway.com/statelist.html]
Please note that many of these county sources can also be used to locate a social security number. However, if you know the person’s full name or address, date of birth, and one or two previous addresses, that’s enough to start your investigation. Another possibility is professional directories. For example, if your subject is a lawyer, doctor, or stockbroker, check out Print Directories or Who’s Who, among many others, at your local library.
By the way, don’t bypass the phone book for directions, or just call the directory information service.
Now assuming you can definitely identify your subject via name/address/date of birth/SSN etc, what is the next step? Start by checking the basic fonts, as follows:
Online sources – I suggest you try PRetrieve first. This site will provide name, former cities, and family names for free, plus, for a fee, general information including property ownership, home value, bankruptcies, judgments, etc. This site was recently purchased by Intelius, so if you prefer, you can go directly to the Intelius website.
Keep in mind that there are two basic types of assets, real assets (mainly real estate) and financial assets (bank accounts, brokerage accounts, etc.). The former are usually documented in public records and are relatively easy to find; the latter are not public records and generally cannot be legally located without a signed release from the subject or a subpoena. The only exception is if your subject has been involved in a court case, such as a divorce or bankruptcy. If so, you’re in luck, as these case filings are public record. So one of the first things to check is vital records in every county you know where your subject has lived. If you want to hire someone to do this for you, try Intelius or US Search.com; its coverage is national.
What about your subject’s occupational information? Determining where you work and in what job or profession can be a real challenge, especially if the person is more or less unknown to you. Of course, if you know the person, you probably also know if he’s a lawyer, a doctor, a police officer, a bartender, or whatever. So it’s just a matter of estimating what someone in that profession or occupation typically earns in their specific part of the country.
A good source for this is the U.S. Department of Labor’s Area Wage Survey. You can also check out American Salaries and Wages, published by Gale Research, Inc. By the way, if you have no idea what the person does, this may be revealed on your voter registration record, available to most adults in the US County Court, and this is public information. While you’re there, check criminal records, civil records, and traffic violations; all are also public records that can reveal the person’s occupation. Finally, you can call the Secretary of State in your State of residence and request a name search, to determine if he/she is a business owner or executive there.
vehicles Let’s face it, the mark of why your subject drives says a lot. If you drive a Hyundai, that’s one thing. If it’s a Lexus or a Porsche, that’s another one. Remember, in asset research, you will never know exactly what the financial worth of your subject is. Your goal is to get a basis for making an educated guess, and if he/she owns a fancy car and also a big boat, you can bet the person is doing pretty well financially. To search for cars and boats, I suggest you use one of my recommended listing agents (see Section II, below), as they can do it almost instantly, and if you try to do it yourself, it could be quite a hassle. While they’re doing this, I suggest you also look into UCC Filings (financial instruments that describe pledged collateral) and Tax Liens and Bankruptcies (either of which is a strong indication of financial hardship).
news sources. The WWW makes it so easy to search local newspapers that you can also look up your subject’s name and see if there have been any articles about him/her. She may discover that her subject got the news because he was promoted to vice president at a local company, or because he was sued for fraud, or for some other reason. It’s definitely worth a try. Go to NewsLibrary.com, Newspapers.com, or a similar site to search.
Some tricks of the trade
In the space that remains, I’ll mention some of the insider tricks and nifty dodges that you should know about. Just by using the resources listed above, you can usually get a pretty good read on your subject’s financial situation. To dig even deeper, consider the following methods:
The pay. People who want to hide assets (eg, in divorce proceedings) sometimes pay home mortgages or other large bills; They may even stash funds in universal life insurance policies or annuities, collectibles, safe deposit boxes, or collectibles. Overpayments to the IRS are not unheard of! Some just go out and buy traveler’s checks or cashier’s checks and hide them under the mattress. Detecting hidden assets is an art in itself, and if you suspect this may be the case, I suggest you hire a good CPA. with experience in this field (it is called forensic accounting). You are not likely to discover the hidden assets on your own.
Drive-By Residence. Simply walking past your subject’s residence provides a quick and easy method of data collection. Note vehicles parked outside, any occupational signs (ABC Computer Consultants, etc.), FOR SALE sign, condition of home and grounds, utility shutoff notices, etc.
Dumpster diving. I’d never go that deep myself, of course, but you should know that a favorite PI trick is to steal your junk from your front yard and then go through it for bank statements, purchase orders, old bills, plane tickets to the Cayman Islands , telephone bills, etc. This is legal as long as the garbage is on the street by the curb.
Fake assets. Sometimes people claim to own shares or securities that are not publicly traded. Some claim to own shares in limited companies that do not exist. In your investigation, keep in mind that all claimed assets are not necessarily real. If you suspect this situation, say, in the context of a legal proceeding, then you are getting into deep financial waters (probably over your head) and I advise you to seek the expert help of an NASD (National Association of Securities Dealers) agent to review the financial statements of his subject.
Background players. If your subject tries to hide assets, he will often put some or all of his assets in someone else’s name, usually in the name of the spouse. So, for a complete investigation, he should also search the assets of the next of kin, particularly the assets of the spouse. And keep in mind that he/she may have hidden assets in the names of non-relatives, such as partners, or may be manipulating assets through “friendly lawsuits” (a trusted friend sues you and then hands over the proceeds of the demand). under the table).
As stated, this is a complicated topic, and I have just touched on the main topics in this article. For a detailed treatment of the topic, I recommend How to Do Financial Asset Research by Ronald L. Mendell, CLI, available through Amazon.