Handling civil fraud

The attorneys-at-law are regularly appointed by the court as fraud trustees in complex bankruptcies. They are also hired by aggrieved parties, trustees, companies and researchers for a (mainly) civil approach to handle fraud, as well as a criminal approach.

Recoup has developed an effective approach. They work together with forensic accountants, ICT specialists, ex-FIOD (The Fiscal Intelligence and Investigation Service) employees, industrial researchers and international experts. The main goal is to recover the fraudulently diverted assets and to impose a prohibition on exercising a profession or a director disqualification.

The approach involves asset tracing, a regularity audit, a debt recovery investigation and a liability claim of directors, fraudsters and ‘facilitators’ of fraud. All possible lawfully means (of coercion) are deployed to this effect. The trustee has the following options among others: (i) the right to enter residential properties and business premises, (ii) detention in order to enforce the duty to inform, (iii) hearing by the delegated judge, (iv) withdraw a passport and (v) disclosure procedures abroad, etc. Also the Employee Insurances Agency (the UWV), the tax authorities and if necessary, the police, the FIOD and the Public Prosecution Service can be contacted in order to secure information and cooperation.

This will be reported to the competent authorities. Experience shows that a criminal case can be useful for the creditors as the aggrieved party. Think of the right of joinder as aggrieved party who is also entitled to items seized (attached before judgement) by the Public Prosecution Service.

If financing is necessary, all options are examined. Positive experience has been made with the rules on providing a guarantee with respect to trustees, creditor financing and financing by the tax authorities. There are possibilities for private financing as well.