Most sophisticated frauds and their recoveries involve several jurisdictions and many other people and entities beyond those suspected of misconduct (e.g. fraud, breach of contract, breach of trust and fiduciary duties). The following is a composite example of cases in which we have acted. We invite our visitors to fashion their own recovery resposes and discuss these with us.

Medcorp Corporation is located in New York and manufactures and distributes medical equipment around the world. Medcorp obtained a $10 million loan from Central Bank which enabled it to merge with Data Equipment, the second largest equipment manufacturer in the world. Tom Rich, the owner of Medcorp, guaranteed the loan and showed on his financial statement a net worth in excess of $25 million.

Five years later, Medcorp’s business experienced serious financial difficulties allegedly because of international competition. It was unable to compete because it could not manufacture the equipment as cheaply as its competitors. Consequently, the business failed.

It appears to Central Bank that its main source of recovery of the indebtedness is against the guarantor, Tom. Since the loan was originally made, Tom has moved to Florida and lives in a multi-million dollar estate.

Tom’s wife is from Switzerland, where their children attend finishing school. A search of the public records reveals that Tom is an officer of a Nevada corporation that was incorporated one year ago. He asserts that he does not have assets sufficient to satisfy his obligation- and he wishes Central Bank a nice day!

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