Assets: gathering evidence

Fraudsters are highly skilled at concealing and dissipating assets but prompt and effective use of freezing injunctions and disclosure orders can greatly improve the chances of retrieval. In the first part of a two-part article, Deirdre Walker and Harriet Levy of the Corporate and Banking Litigation Group at Norton Rose, London adopt a practical approach to tracing and recovery.

When and why should the claimant consider the defendant’s assets?

Deciding whether or not the defendant is worth suing or joining to an action

This is a necessary exercise in any action but the drivers behind it in fraud actions are very different and demand that the analysis be carried out immediately with care and in detail. When deciding whether or not to seek a freezing injunction the first consideration is that the court will only grant a freezing injunction if the applicant is able to show that the defendant has assets within this jurisdiction. Secondly, the applicant may wish to freeze specific assets only, or to specify particular assets on the face of the order. In addition, the applicant may wish to consider applying for ancillary orders for disclosure relating to assets (to which there is further detailed reference below) at the same time as applying for the freezing injunction.