Paying for freedom – stolen asset recovery investigations in new democracies

Once the initial euphoria subsides, the attention of governments in emerging democratic states immediately turns to money matters with recovery of funds misappropriated by an ousted regime high on the agenda. Easy enough to justify politically, repatriation of stolen wealth calls for a careful investigative and legal strategy, often spanning multiple jurisdictions, if the hopes of the newly enfranchised populace are to be fulfilled. Angela Barkhouse and Kevin Hellard of Grant Thornton UK LLP and Jamie Curle and Jean-Pierre Douglas-Henry of DLA Piper LLP look at how and where to find the missing assets.

Jamie Curle (+44 (0)20 7796 6296, jamie.curle@ dlapiper.com) and Jean-Pierre Douglas-Henry (+44 (0)20 7153 7373, JP.DouglasHenry@dlapiper.com) are partners at DLA Piper.

Stolen asset investigation and recovery is rarely straightforward in the regime change context. Often, in cases of fraud and corruption by former government officials, the picture will be incomplete as they will have hidden their activities behind the veil of public office and state secrecy. While there is likely to be some evidence pointing to corruption, possibly implicating members of the former government, and theories about where looted assets may be located, there will almost certainly be gaps in the information available, limited documentation and few witnesses who are willing or able to come forward. This presents particular challenges to forensic investigators and lawyers pursuing recovery action.