Asset Search Techniques and

Experiences in Asia-Pacific

Diana Ngo
Associate Director, Blackpeak

Natalie Kwan, CFE

Director of Research, Blackpeak
Asset Search Techniques and
Experiences in APAC
September 2017
Hong Kong | Singapore | Tokyo | Shanghai | Beijing | Guangzhou | New York
INTRODUCTION
 Introduction

▪ What to consider before a search

▪ Registers and databases
▪ Structuring and reporting your investigation
▪ Case studies
THINGS TO CONSIDER
 Why Conduct Asset Searches?

▪ Review of net worth

▪ Pre-litigation support
▪ Enforcement of debt payment
▪ Bankruptcy support
▪ Familial disputes
▪ Locating criminal proceeds
 Types of Assets
In order to plan a successful asset search, we must
first consider the types of assets that your target
might hold.

Intangible
assets

Assets
held by a
person or
company

Real estate Investments

Vehicles Cash
 Hiding Assets
Not all assets can be found easily, especially if your
subject is trying to hide something.
 Corroboration and Verification
How can you prove the asset is owned by your subject?

1. Is it credible the direct owner would own this asset?

2. Are there any clues that suggest the subject might be
the ultimate owner or beneficiary?

▪ Review the direct owner’s source of wealth and background

▪ Past ownership
▪ Any indirect links to the subject
 Other Considerations

▪ Jurisdiction
▪ Where to look for assets
▪ Extent information is available in certain regions, e.g.
offshore locations

▪ Legal and Ethics

▪ What sort of information is available for third parties
▪ Privacy laws
REGISTERS AND DATABASES
 Directorships and Shareholding

▪ Hong Kong
▪ Hong Kong Companies Registry
▪ Business Register
▪ Hong Kong Stock Exchange
R: 35
▪ Vietnam G: 82
B: 27
▪ Department of Planning and Investment
▪ General Department of Taxation
▪ Hanoi Stock Exchange
▪ Ho Chi Minh Stock Exchange
 Directorships and Shareholding
Hong Kong Companies Registry

R: 35
G: 82
B: 27
 Directorships and Shareholding
Hong Kong Companies Registry: Document Filings

R: 35
G: 82
B: 27
 Directorships and Shareholding
Hong Kong Companies Registry: Directors

R: 35
G: 82
B: 27
 Directorships and Shareholding
Hong Kong Companies Registry: Shareholders

R: 35
G: 82
B: 27
 Directorships and Shareholding
Hong Kong Business Register

R: 35
G: 82
B: 27
 Directorships and Shareholding
Hong Kong Stock Exchange

R: 35
G: 82
B: 27
 Directorships and Shareholding
Hong Kong Stock Exchange
Disclosures may show you shareholding
relationships and stock pledges:

203: having a security interest in shares

205: held via corporation
206: held as nominee
207: trustee
R: 35 210: beneficiary of trust
G: 82 213: jointly held
B: 27
 Directorships and Shareholding
Hong Kong Stock Exchange

Disclosures can help you figure out shareholding structure of offshore interests

R: 35
G: 82
B: 27
 Directorships and Shareholding
Vietnam
• Information is more limited
• So, what is available?
• Founding shareholders
• Legal representatives
• Sometimes… directors

R: 35
G: 82
B: 27
 Directorships and Shareholding
Department of Planning and Investment

R: 35
G: 82
B: 27
 Directorships and Shareholding
Department of Planning and Investment

R: 35
G: 82
B: 27
 Directorships and Shareholding
Department of Planning and Investment

R: 35
G: 82
B: 27
 Directorships and Shareholding
DPI – Companies

R: 35
G: 82
B: 27
 Directorships and Shareholding
DPI – Companies

R: 35
G: 82
B: 27
 Directorships and Shareholding
DPI – Companies

R: 35
G: 82
B: 27
 Directorships and Shareholding
DPI – Companies

R: 35
G: 82
B: 27
 Directorships and Shareholding
DPI – Individuals

R: 35
G: 82
B: 27
 Directorships and Shareholding
DPI – Individuals

R: 35
G: 82
B: 27
 Directorships and Shareholding
DPI – Individuals

R: 35
G: 82
B: 27
 Directorships and Shareholding
General Department of Taxation - Vietnam

R: 35
G: 82
B: 27
 Directorships and Shareholding
General Department of Taxation - Vietnam

R: 35
G: 82
B: 27
 Directorships and Shareholding
GDT – Tax Records for Companies

R: 35
G: 82
B: 27
 Directorships and Shareholding
GDT – Tax Records for Companies

R: 35
G: 82
B: 27
 Directorships and Shareholding
GDT – Tax Records for Companies

R: 35
G: 82
B: 27
 Directorships and Shareholding
GDT – Individuals (Legal Representative)

R: 35
G: 82
B: 27
 Directorships and Shareholding
GDT – Individuals (Legal Representative)

R: 35
G: 82
B: 27
 Directorships and Shareholding
GDT – Individuals (unknown ID)

R: 35
G: 82
B: 27
 Directorships and Shareholding
GDT – Individuals (unknown ID)

R: 35
G: 82
B: 27
 Directorships and Shareholding
Hanoi Stock Exchange

R: 35
G: 82
B: 27
 Directorships and Shareholding
Ho Chi Minh Stock Exchange

R: 35
G: 82
B: 27
 Directorships and Shareholding
Ho Chi Minh Stock Exchange

R: 35
G: 82
B: 27
 Directorships and Shareholding
Ho Chi Minh Stock Exchange

R: 35
G: 82
B: 27
 Company Assets

▪ Hong Kong
▪ Hong Kong Companies Registry – mortgages and charges
▪ Listed company annual reports

▪ Vietnam
R: 35
▪ Department
G: 82 of Planning and Investment
B: 27
▪ National Credit Information Center of Vietnam
▪ Listed company annual reports
 Company Assets
Hong Kong Companies Registry: Mortgages and
Charges

R: 35
G: 82
B: 27
 Company Assets
Department of Planning and Investment

R: 35
G: 82
B: 27
 Company Assets
National Credit Information Center of Vietnam

R: 35
G: 82
B: 27
 Company Assets
Listed Companies – Annual Reports & the Stock
Exchanges
▪ Varies widely in terms of what is actually disclosed to the
stock exchange

R: 35
G: 82
B: 27
 Property

▪ Hong Kong
▪ Hong Kong Land Registry (IRIS)

▪ Vietnam
▪ National
R: 35 Registration Agency for Secured Transactions
G: 82
B: 27
 Property
Hong Kong Land Registry

R: 35
G: 82
B: 27
 Property
Hong Kong Land Registry
 Property
Vietnam’s National Registration Agency for Secured
Transactions
 Property
Vietnam’s National Registration Agency for Secured
Transactions
 Property
Vietnam’s National Registration Agency for Secured
Transactions
 Litigation Database

▪ Hong Kong
▪ Published Judgments
▪ Writs
▪ Commercial litigation databases

▪ Vietnam
▪ Not available
 Litigation Database
Ordering Writs and Judgments
 Vehicle, Trademark and Patents

▪ Hong Kong
▪ Transport Department
▪ Intellectual Property Department
▪ Hong Kong Jockey Club

▪ Vietnam
▪ National Office of Intellectual Property
Vehicle, Trademark and Patents
 Media Searches
▪Assets we identified through media and online
searches in previous cases include:

▪Car ownership
▪Art collections
▪Wine collections
▪Luxury yachts
▪Private jets
▪Holiday homes and luxury villas overseas
▪Information on hobbies and lifestyle habits, e.g.
investment and sponsorship of yachting races,
exclusive club memberships

Don Ramey Logan [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons
Lamborghini Murciélago Roadster 2005, Photographer: Robert Paprstein Date: 23.01.2005 Location: Vienna Motor Show, Messegelände Wien
By Milorad Tunić (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons
By Raysonho @ Open Grid Scheduler / Grid Engine (Own work) [CC0], via Wikimedia Commons
Social Media
 Source Inquiries and Site Visits

▪ Source inquiries and site visits can help locate

leads:
▪ Assets that may not be registered on searchable
databases
▪ Corroborate media or social media mentions of certain
assets
▪ Detect or verify assets that may be held by proxies, but
ultimately benefiting the subject
▪ Provide an indication of the source’s lifestyle and
spending habits
STRUCTURING AND REPORTING
YOUR INVESTIGATION
 The Asset Search as a Creative Process
The asset search is a constant balance:
Systematically
searching through Creatively following
available sources of leads
information

Identifying corporate
Relevant databases affiliations and searching for
possible proxies held by them

Media, online and social Research may lead to other

media searches jurisdictions

Identifying proxies and

Searches may locate
searching for possible assets
previously unidentified proxy
held by them

Identifying corporate Site visit may locate

affiliations and searching for equipment or assets not
possible proxies held by them previously detected
 The Asset Search as a Creative Process
The asset search is a constant balance:
 Reporting Your Findings

▪ Valuing assets
▪ Categorise assets
▪ Provide proper documentation for your findings
CASE STUDIES
 Case 1: Animal Feed Company
Client: International Law Firm
Subject: Livable Investment Corporation
Jurisdiction: Vietnam

Objective:

Client’s end client has received an international arbitration award against

Livable Investment Corporation.

End Client wishes to locate Livable Investment Corporation’s assets.

The Catch:

No one has been able to deliver the decision to Livable Investment

Corporation. They are unsure if the company is even operating.
 Identifying Subjects
Identifying the main subjects to search:

Liveable Animal
Phan Quang Pham Thi Lan
Feed

Media reports that it had Founding shareholder of

8 tons of feed slated for a Founding shareholder of 2 companies in Vietnam
pig farm and another 2 companies in VN.
9.84 tons for a different
customer Same as Phan Quang’s
Legal Rep of another companies
company that is inactive
Searches found it had put
up a number of assets
from its factory and He put up six vehicles as Connected to one address
warehouses as collateral collateral for secured in Hanoi
for secured loans loans

Property records
unavailable. Connected to two address
in Hanoi Put up one vehicle as
Shareholding collateral for secured
information leads to loans
Phan Quang and Pham Site visit confirms Pham
Thi Lan Thi Lan is his wife
 Alternative Sources
Limited Information in VN, where else to get information?
 Alternative Sources
Limited Information in VN, where else to get information?

Facebook
 Alternative Sources
Limited Information in VN, where else to get information?

Facebook
 Alternative Sources
Limited Information in VN, where else to get information?
 Government Databases
An animal feed company needs a factory, or maybe two. But land is hard to
come by as the government controls it.

Knowing that…
 Government Databases
Vietnam’s National Registration Agency for Secured
Transactions
Site Visits
Site Visits
 Findings
• Livable Animal Feed is operating and much bigger than its records lead us
and the Client to believe
• Although it leased the land from the government, its physical assets are
there

From our social media investigation, collateral it put up for secured loans
and our site visit, this includes:

• Vehicles
• Factory Building
• Raw Materials
• Animal Feed
• Equipment (industry grade digital scale, exhaust fan system, tablet
press machine, etc.)

• Further searches on Phan and Pham, found they own three properties
together and seven vehicles they have put up for collateral
 Case Study 2: Hong Kong Shipping
A client suspects their bankrupt shipping partner is lying about having no
assets. Before starting the asset search, there are a few factors to take into
consideration:

Jurisdiction

Industry

Type of
asset

Image source: http://maritime-connector.com/wiki/dry-cargo/

 Identifying Subjects
Identifying the main subjects to search:

BVI Company
Xeno Affiliates Jason Fung
(“Xeno”)

One property owned by him and

Located companies in
Media reports that it other individuals surnamed
China, Hong Kong, Fung, presumably relatives.
owned two secondhand
Panama and BVI under Three properties held by him
ships, but no record of and wife via corporate vehicles,
the same name. Media
current ownership purchased several years pre-
searches suggest they bankruptcy (i.e. likely personal
operate as part of the assets)
same group.
Ordered 5 new ships in
2009 but no information The Hong Kong company Director of 10 companies, four
to suggest that is named in the Chinese of which use the Xeno name.
construction was Shipping Register as an Remaining companies are real
completed operator of a ship, but estate development or shipping.
doesn’t own it.
Another Hong Kong
No property or other
company owns 1 property Media and online searches find
assets identified. traces of Fung being a former
(and sold 2)
Shareholding, director of 10+ companies in
directorship and financial Site visits indicate all Panama. No shareholding
statements not available offices are serviced available.
offices.

Image source: http://maritime-connector.com/wiki/dry-cargo/

 Following Leads
Some assets identified, but further leads to follow:

BVI Xeno Xeno Affiliates Jason Fung

Non-Xeno
Ship operator – companies: what
Where are the
who owns the do they do, and
secondhand ships?
ship? any assets or
activities there?

Panama shipping
What happened to Cross-check any
companies (China
the boats they directors for
X Shipping) – new
ordered – where current links to
jurisdiction to
are they now? shipping industry
consider

Image source: http://maritime-connector.com/wiki/dry-cargo/

 Findings
Some more clues we found from following the leads brought us to three
groups:
•The boats ordered by Xeno are now owned by CRB (according to cross checking of shipping registers, ship
order statues and hull numbers)
•GM of CRB used to work for Xeno and visited shipyards when the boats were first ordered
CRB Ltd (BVI) •The former secretary of Jason (named in a court case) is the master client of a few CRB affiliates (according
to ICIJ)
•Site visit to Hong Kong affiliates address finds company sign for Ipsos Ltd, whose chairman is a business
partner of Fung

•China X Shipping owns some of the ships operated by CRB Ltd. according to the China Shipping Registry
(where these ships are registered)
China X Shipping •Searches found a collision accident report naming the ship as operated by CRB and owned by China X
Companies •Searches of available current records shows that his relative (believed to his brother) is a director. The
relationship between Fung and this individual is confirmed from the property record previously found.

•One of Fung’s companies in the reverse directorship searches was Clover Land Ltd. Site visits to the office
found a sign for Clover Shipping Ltd.
•There is no direct connection between Fung and Clover Shipping in corporate databases – the sole owner
Clover Shipping Ltd. and director is a PRC individual with no known trace.
•Media searches find an industry publication naming Fung as chairman of Clover Shipping. Several former
employees from Xeno now work there.
•There are four vessels under its name according to industry databases but we weren’t able to identify them
•One source suggested that Clover Shipping is the replacement of Xeno
Alternative Sources of Information
 Relationship Chart

Black: direct assets held by group

Red: assets possibly held by related/successor companies
Yellow: personal assets
 Dead Ends
Not all leads result in a jackpot. In this case we hit a lot of dead ends before
arriving at these findings.

• We identified over 10 business associates and relatives who had no direct

relationship with the relationships above. Several business associates
appeared to be ex-Xeno employees that have set up shipping and freight
companies. We conducted research and site visits on each of these
businesses in order to determine whether they were potential fronts or
holders of Xeno assets

• Fung himself was involved in other side businesses including a real estate
project in mainland China, as well as several shipping-related companies.
But we didn’t find any information on assets held by these shipping
companies, which appeared to be dormant or inactive.

• We identified assets held by Fung’s business associates but again no

information to suggest these assets were held on behalf of Fung or Xeno (i.e.
they were residential properties they lived in, etc.)
Natalie Kwan Diana Ngo
Director of Research – Hong Kong Associate Director - Singapore
Direct: +852 3758 2143 Direct: +65 6521 4505
Mobile: +852 9673 7136 Mobile: +65 9111 9186
Email: [email protected] Email: [email protected]

About Blackpeak

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critical risk-related information for our clients worldwide.

We specialize in investigative due diligence, investigations and security, and business intelligence
research. Each project is executed by our in-house team with unmatched in-country expertise, using
customized investigative methodologies.

Our team members have been managing risk consulting projects for more than 20 years covering all
industries across the globe.

Founded in Asia, the firm now operates from strategic locations in key financial and economic centers,
including Hong Kong, Singapore, Tokyo, Shanghai, Beijing, Guangzhou and New York.

For more information, please visit www.blackpeakgroup.com

Hong Kong | Singapore | Tokyo | Shanghai | Beijing | Guangzhou | New York

Asset Search Techniques and
Experiences in Asia-Pacific

Diana Ngo
Associate Director, Blackpeak

Natalie Kwan, CFE

Director of Research, Blackpeak