The challenge for Attorneys for creditors who are successful in collection actions or intend to be successful in enforcing judgment is the debtor’s asset location.
Knowing this, smart debtors hide assets to avoid paying debts.
It is the famous “wins but doesn’t take”, which torments many creditors who have executions in Brazil.
Montax Intelligence listed 5 among the main money laundering and asset concealment schemes that are being repeated today due to the failures of the legal system in the face of modern technologies.
The first on the list is the most modern way for the debtor to hide assets in order not to pay debts.
He does this by opening accounts at cryptoactive brokers (exchanges) and Bitcoin and other altcoin wallets, software known as Wallet ID.
The most aficionados buy hardware wallets, electronic devices similar to a pendrive that store cryptocurrencies.
And because the current, modern and disruptive system of Decentralized Finance (DeFi) is still not reached by SISBAJUD, as explained in the article Digital Revolution, Blockchain & Cripto™ – Private Currencies and Decentralized Finance.
Montax solves this by discovering the debtor’s digital traces and recommending the creditor’s Attorney an e-mail or official letter to the Brazilian Association of Cryptoeconomics (ABCRIPTO) (2018) (CNPJ 30.933.957/0001-51), headquartered in São Paulo-SP, Rua Ramos Batista, 444 7th Floor – Vila Olímpia – CEP 04552-020, by its Director NATÁLIA DE PAULA GARCIA (email@example.com) (Source: https://registro.br), requesting that she send official letters to associated cryptoactive (exchange) brokers, Foxbit, Bitcoin Market, NovaDAX, Bitblue, Alter and Travelex Bank.
#2 Offshore Accounts
Maintaining bank accounts abroad in the name of the debtor or the debtor’s holding company is a well-known and sophisticated scheme, but not very accessible due to operating expenses.
Sophistication is now in simplicity: Modern digital banks allow you to open accounts and transfer values abroad in just a few minutes. Digital banks with C6 Bank and Banco BS2 allow a person from Brazil to open bank accounts in the Cayman Islands, while Nomad opens an account in the United States of America.
Not to mention the myriad of global digital banks that function as exchanges.
Montax solves this from the debtor’s fingerprints and recommends to the creditor’s lawyer an email or letter to these financial institutions.
#3 Withdrawal of a Partner
This scheme works as follows: Knowing that the company has unpayable debts or that the partners have no interest in paying for not running out of money, they simulate the withdrawal of a partner who receives as “indemnification” the company’s main assets.
These assets transferred to the “excluded” partner are protected by a secret agreement, usually in the form of a confidential private contract.
Montax solves this by accessing evidence of the emptying of assets and the actual use of the hidden assets in the name of the partner who has withdrawn from the company.
#4 Simulated Divorce
Very similar to the partner withdrawal scheme, in this scheme the debtor performs a simulated divorce to end the marital partnership.
The spouse receives the debtor’s financial assets as part of an “agreement.”
Montax solves this by accessing evidence that the divorce took place only “on paper.”
#5 Business Succession
It is the most common of all frauds against creditors: The entrepreneur illegally closes the business company and opens another one using the same fixed and intangible assets such as real estate, vehicles, labor, know-how and client lists.
The new company or successor company is usually opened on behalf of interposed persons (“strawman”).
And so on, harming civil, tax, labor and social security creditors.
Montax solves this through access to evidence of economic and family group integration and, consequently, of business succession.
Combined Asset Shielding Strategies
More savvy debtors use a combination of these and other asset shielding strategies over time and as circumstances dictate.
The chances of having the legal department or law firm working for the creditor increase with the help of a firm specializing in Financial Intelligence & Asset Investigation.
Know more with the article Intelligence & Investigations, Compliance, Due Diligence And Asset Search in Brazil – Montax Case Studies.
ABOUT THE AUTHOR
MARCELO CARVALHO DE MONTALVÃO is the director of Montax Intelligence, franchise of private Intelligence services such as Compliance, Investigation, Due Diligence and Asset Search that has assisted large law firms and legal departments of companies such as PSA Group (Peugeot Citroën), Cyrela, LG Eletronics, Localiza Rent A Car, Sara Lee, Kellog, CWA Consultores, Geowellex, Sonangol Oil & Gas, Chinatex Grains and Oils, Generali Seguros, Estre Ambiental , Magneti Marelli, Pan Bank, BTG Pactual Bank, Alfa Bank, W3 Engineering and many other trademarks.
A Criminal lawyer specialized in Economic Criminal Law and financial crimes such as fraud in the execution, laundering or concealment of assets, rights and values and reverse engineering of asset shielding for the solution of millions fraud schemes.
Author of the book “Intelligence & Industry – Espionage and Corporate Counterintelligence”
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Due Diligence | Asset Search | Corporate Investigation | Compliance Intelligence