Fraud Victims: How to Recover Your Money from the Bank
Download MP3 Description: In this episode, we discuss how third-party liability can play a crucial role in recovering money lost to fraud, scams, or Ponzi schemes.
- The Problem of Short Recovery:
- Victims of scams may only recover a portion of their losses (e.g., 40-60 cents on the dollar) after the asset recovery process.
- How does this get resolved?
- The Role of Third Parties:
- In many fraud cases, the majority of recovered funds come from third parties, such as banks, attorneys, or marketing companies, who indirectly enabled the fraudster.
- Third parties may not have been directly involved in the scam but contributed by not performing enough due diligence or missing critical information.
- Real-World Example:
- A $7 billion Ponzi scheme where victims were short $1.2 billion.
- TD Bank was involved by opening accounts for the scammer, despite not knowing about the fraud.
- Banks, unlike scammers, are not hiding assets, and they often have readily available resources like real estate and insurance policies.
- Investigating Third Parties:
- As part of any fraud investigation, it's important to examine which third parties might have liability.
- Banks and other institutions have assets that are easier to locate and access compared to scammer's hidden accounts.
- Insurance and Liability:
- Third parties like banks, accountants, and attorneys often carry insurance policies (e.g., professional liability insurance) that could pay out if they are found liable.
- Action Steps for Victims:
- Include third-party involvement in your investigation, as they may owe you money.
- Attorneys often look into these third-party liabilities to ensure their clients are not left without recovery.
Remember, we are not offering legal advice, but understanding third-party liability can be a crucial aspect of recovering what you’ve lost.
Disclaimer: The contents of this episode are for informational purposes only and should not be considered legal advice. Always consult a professional attorney when dealing with fraud recovery.
