High Yield Investment Scam
case study

— International Private Investor

Background

The case involved a private investor who was defrauded by a well-organised financial misappropriation scheme. The scheme operated out of more than 15 jurisdictions worldwide and was supported by (believed to be corrupt) nominee directors, lawyers, accountants, auditors and banks.

How Blackhawk Approached The Case

During the pursuit of this case we used the following investigative tools and skills:

Seed data was collated and the evidence evaluated. The network of companies was identified using multi-jurisdictional skill and contacts; beneficial owners and shadow directors were also identified
Assets of the owners and officers were identified and it was determined whether they originated from legitimate sources or proceeds of fraud
When serious criminal conduct was believed to have occurred and subject to the client’s prior approval, immediate contact was established with the relevant law enforcement authority

What Contributed To Success

As with most pony schemes, their success relies heavily on the willingness of the victim to believe in the people promoting the scheme. In short, it’s a confidence trick.

From the outset of our investigation we instilled a determination to disbelieve.

As such it was established at an early stage that the scheme appeared to depend largely upon confidence created by the perpetrators. All the material provided and representations made by the personnel were treated as tainted from thereon.

Blackhawk has operatives and contacts in many jurisdictions. Our ability to cross jurisdictions as a private investigator proved critical because law enforcement is generally bound to a jurisdiction; our investigation was trans-national which reflected the fraud and our investigation results were far superior in depth to that of the various jurisdiction bound police and catalysed the criminal investigation.

Other contributing success factors concerned our depth of personal contacts worldwide; working cooperatively with other claimants and litigants and our experience of previous similar cases.