1. Asset
and Encumbrance
Investigations
By
Jim Cronin, MPA, CFE
Seattle Insurance and Legal Investigations
Presented to:
Whatcom County Bar Association
CLE
November 17, 2016

2. My Background
• 20 Years USAF Police 1969-1990
• Masters Degree – Public Administration
• Certified Fraud Examiner since 1992
• Insurance Fraud Investigator (SIU) 11 years
• Licensed as an PI Since 2000
• Completed 3100 (Non-Military) Investigative
Assignments
• 210 Asset & Encumbrance Investigations
• Licensed as an armed investigator -2016

3. Why Is Experience Important?
• Steep Learning Curve
• No school teaches how to do Asset & Encumbrance
Investigations
• I’m not just:
• Providing Service
• Selling Information
• BUYING LIABILITY!

4. Questions To Ask Your Investigator
• Get a copy of their C.V.
• Get a copy of their Professional Liability Insurance
Certificate
• How many Asset/Encumbrance Investigations have
you done?
• Do you have a sample report I can see?

5. Go to my website!

6. Tons of Freebies!

7. Freebies
• Sample Asset/Encumbrance Report
• Worksheets/Forms
• Flow Chart
• Article “How Much Is An Asset
Investigation?”
• Call Me! Consultations are always free.

8. Objective
• Help you better represent your clients’
interests.
• Help you avoid common mistakes.
• I want you to walk out of this room saying
to your self that “I learned something that I
can actually use to do a better job.”
• I also want to learn from YOU!
• Feedback is important!

9. Attendee Assessment
• What do YOU want to get out of this
presentation?
• Do you use VENDORS or do yours
IN-HOUSE?
• What PROBLEMS have you
encountered?

10. Terminology
Common Term:
• “Asset Check”
Correct Term:
• “Asset and
Encumbrance
Investigation”

11. Timing
• When should you conduct an Asset
Investigation?

12. Timing - Continued

13. Make Determination Of Feasibility
Of Recovery
• Conditions can and will change…
• For the BETTER or
• For the WORSE!

14. How This Presentation
is Arranged
•Broad Overview of Steps
•Closer View of Steps
•Detailed View of Steps

15. Broad Overview
of Steps
• Determine the PURPOSE of your investigation.
• Determine the SCOPE of your investigation.
• IDENTIFY the DEBTOR(S)
• ADDRESS HISTORY of DEBTOR(S)
• Find the ASSETS
• REALITY CHECK TIME
• Find the ENCUMBRANCES
• Make a DETERMINATION

16. Logic
Path
Determine The Scope & Purpose
Of Your Investigation

17. Logic Path
• What do I know about this matter?
• What do I suspect?
• What issues am I trying to resolve?
• What information would help me
resolve those issues?
• Where can I get that information?

18. Closer View of Steps
•Identify the Debtor
–Individual?
–Current Identity?
–Previous Names
–Nicknames
–Trade Names

19. Identify the Debtor
Cont’d
• Aliases
• Compound Names –
• Hispanics Do Not Hyphenate Their Names!
• Hyphenated Names
• “Name Salad”

20. Search Tips:
• Syntax varies widely!
• Search until you get a result!
• Use Truncation
• “No record found” is a result
• If you see it, print it!
• Keep track of search terms used
•Matrix

21. Search Matrix Example

22. Identify the Debtor
Continued
•Marital Community?
–Joint and Several Liability?
–This doubles the scope!
•Sole Proprietorship?
•Corporation(s)
–Subsidiary Corporations?

23. What kind of Debtor are you
dealing with?
OR

24. Types of Debtors

25. Develop an Address History
• Importance of Addresses:
•Records are filed by counties!
•Some cities are in multiple counties!
•You need to know where to look!

26. Search For Assets
• Definition of an Asset:
•Something of value that a debtor
owns that could be attached/seized to
satisfy a debt.

27. Examples of Assets
• Employment
• Real Property
• Bank Accounts
• Businesses
• Business Personal
Property
• Accounts Receivable
• Vehicles/Vessels
• Pending civil suit
settlements
• Insurance/Bonding
• Aircraft
• Inheritances
• Intellectual Property
• Personal Property
• Jewelry
• Guns
• Various Collectibles
• UCC – Secured Party

28. Bank Searches
• Beware! Pretexting is a Felony!
• Get Copy of their Professional
Liability Insurance Certificate!
• Only do business with firms you
trust.

30. Reality Check Time
•If there are no assets,
encumbrances are a moot
point.

31. Search For Encumbrances
• Definition of Encumbrance:
•Impediment on property that lowers
its value or makes it more difficult to
gain title to.

32. Examples of
Encumbrances
• Deeds of Trust
(Mortgages)
• Bankruptcies
• Double-edged sword
• Child Support
Obligations
• Tax Liens
•Federal
•State/County
• Judgments
• Unpaid Court
Fines

33. Determine the Net
Attachable Equity
• This is the most commonly
overlooked issue!
• Current Market Value
• MINUS Value of Superior
Encumbrances
• = Net Attachable Equity

35. Make Determination of
Feasibility of Recovery
• Likelihood that Debtor will attempt to
Abscond/Conceal/Transfer/Destroy Assets
• Cost of pursuit of assets versus value
available
• Number of other entities with Superior
Claims also seeking to recover from Debtor
• Timing of recovery efforts
•Late to the Party??
• Homestead Exemption - $125,000

36. RCW 6.13.030 Homestead exemption
limited
• A homestead may consist of lands, as described in RCW 6.13.010,
regardless of area, but the homestead exemption amount shall not
exceed the lesser of (1) the total net value of the lands, manufactured
homes, mobile home, improvements, and other personal property, as
described in RCW 6.13.010, or (2) the sum of one hundred twenty-five
thousand dollars in the case of lands, manufactured homes, mobile
home, and improvements, or the sum of fifteen thousand dollars in the
case of other personal property described in RCW 6.13.010, except
where the homestead is subject to execution, attachment, or seizure by
or under any legal process whatever to satisfy a judgment in favor of
any state for failure to pay that state's income tax on benefits received
while a resident of the state of Washington from a pension or other
retirement plan, in which event there shall be no dollar limit on the
value of the exemption.

37. Detailed Steps in Searching
For Assets
• Fully Identify the Debtor
• Start with Source Documents
– Police Report etc
• Use Subject ID Form
• JIS
– Full Legal Name
– Date of Birth
– Physical Description
– Address on file with Courts

38. Detailed Steps in Searching
for Assets
Fully Identify the Debtor (Continued)
TLO, IRB, Tracers etc:
Premier investigative databases.
Surname
of record
First Name
of record
Middle Name/
Initial
Suffix Social Security
Number Associated with
this
Name
Date of Birth/
Age
Notes

39. Detailed Steps in Searching
For Assets
Address City, State,
Zip Code
County Dates
Reported
Notes
• Develop an Address History
•TLO + Accurint
•+ Other Sources

40. Where to Search by Asset
Type
• REAL PROPERTY:
•TLO/IRB/Accurint
•Recorder’s Offices
•Assessor’s Offices
•Washington State Digital Archives

41. Vehicles & Vessels
IVIPS
• IVIPS Will Shut Down on December 9, 2016
• DOL is modernizing our outdated vehicle and vessels computer systems, including
IVIPS. The IVIPS system will no longer be available as of December 9, 2016 at 5
p.m. The IVIPS system will change to E-Services Contracted Plate Search (CPS), and
registered users can access the new system on December 12, 2016.
• In anticipation of this change, we strongly encourage you to create a new business
License eXpress account. You may register for a new account as early as November
7, 2016, before the system goes live on December 12, 2016.
• If you are a main account administrator, you will receive additional information through
email, which contains a PIN number you’ll use to register for your new account. Once
you establish your account, you will need to create new accounts for your authorized
sub-account users.
• If you are currently an authorized sub-account user, the main account administrator at
your organization will establish your account for you once he or she has enrolled
through early registration.
• Support will be available! Contact the Drives Support Command Center after
November 7, 2016: 360-664-9650 or DRIVEShelp@dol.wa.gov

42. IVIPS Caveat!
• RCW 46.12.635
• Disclosure of names and addresses of individual
vehicle owners.
• (Effective January 1, 2014.)
• (4)(a) Whenever the disclosing entity grants a request for information under this section by an attorney or private
investigator, the disclosing entity shall provide notice to the vehicle owner, to whom the information applies, that the
request has been granted. The notice must only include: (i) That the disclosing entity has disclosed the vehicle
owner's name and address pursuant to a request made under this section; (ii) the date that the disclosure was made;
and (iii) that the vehicle owner has five days from receipt of the notice to contact the disclosing entity to determine
the occupation of the requesting party.
• (b) Except as provided in (c) of this subsection, the only information about the requesting party that the disclosing
entity may disclose in response to a request made by a vehicle owner under (a) of this subsection is whether the
requesting party was an attorney or private investigator. The request by the vehicle owner must be submitted to the
disclosing entity within five days of receipt of the original notice.
• (c) In the case of a vehicle owner who submits to the disclosing entity a copy of a valid court order restricting
another person from contacting the vehicle owner or his or her family or household member, the disclosing entity
shall provide the vehicle owner with the name and address of the requesting party.

43. WA Vehicles & Vessels - IVIPS
• Attention to detail is critical!
• Log EVERY search. Don’t Double- Click
• Check my website for Excel Spreadsheet
• Accounts are Subject to Audit!
• Understand Syntax: LAST,FIRST
• Can search by:
• Name
• Plate – no spaces!
• VIN/HIN

44. WA Vehicles & Vessels - IVIPS
•Vehicle Title Histories
• Email to vdisclose@dol.wa.gov
• Include IVIPS account number
• VIN of vehicle
• Certified/Non Certified
• Log Into Your IVIPS Log!
• Results in 1 hour or less
• Cost effective

45. Where to Search by Asset
Type
• Businesses:
• WA Department of Licensing
• WA Department of Revenue
• WA Secretary of State
• TLO/IRB/Accurint Comprehensive Reports
UBI Business
Name
Trade
Name(s)
Bus.
Type
Date
Opened
(Descending)
Date
Closed
Governing
Persons
Address Registered
Agent
Notes

46. Where to Search by Asset
Type
•Sources of Employment Info:
• Accurint – People at Work
• TLO – Comprehensive Report
• Professional Licensing – WA Department of
Licensing
• Bankruptcy Filings
• News Articles – NewsLibrary
• LinkedIn & Facebook
• Telephone Numbers – Investigative Databases

47. Where to Search by Asset
Type
•Pending Civil Suit Settlements
•WA Administrator of Courts
•SCOMIS/Odyssey
•Newspapers
•Internet

48. Where to Search by Asset
Type
•Insurance/Bonding
•WA Labor & Industries - Contractors
•WA Department of Licensing
•Washington Bar Association –
Attorneys
•Collision Reports

49. Collision Reports
• Washington collision reports are public record, and
can be ordered online!
• Check JIS for citations:
• Order collision report online:

50. Where to Search For
Encumbrances
•TLO/Accurint/IRB:
•Bankruptcies
•Tax Liens
•Judgments
•Notices of Default

51. Searching the Recorder and
Assessor’s Offices
• Files are intertwined
• Assessor:
• By address
• By parcel number**
• By name (at Assessor’s Office)
• Recorder:
• By name
• By parcel number**

52. Searching the
Recorder’s Office
• Online
•Recorder’s Site
•Statewide Digital Archives
• At Recorder’s Office
• King County : King County
Archives

53. Searching the
Recorder’s Office
• Limitations:
•Images of all documents are not available
online.
•e.g.: Deeds of Trust in King County
•TLO “Locate/Asset Report” has mortgage-
deed of trust info.

54. King County Archives
1215 East Fir Street, Seattle

55. Searching the Recorder’s
Office
•Recorded Documents:
•Deeds of Trust
•Tax Liens
•Liens on Property
•Lis Pendens

56. Searching the Recorder’s
Office
•Tip: Be sure to search by
•Party name AND
•Parcel Number!

57. Searching the Recorder’s
Office
• Some types of documents relevant
to asset investigations:
•Deeds of Trust
•Reconveyances**
–Check for Related Documents!

59. Types of Documents
At the Recorder’s Office
• Liens
• Excise Tax Affidavits
• Marriage Certificates
• Lis Pendens
• Warranty Deeds

60. Searching the Recorder’s
Office
• Many types of documents are recorded!
• The Recorder does not verify
documents’ authenticity!
• Not everything that is recorded is real!
• Pay attention to “When recorded, return
this document to _____”

61. Searching Federal Courts
• PACER:
•Bankruptcy Filings
–Hyperlinked to actual
documents/schedules
–Archived within several years
–Federal Archives – Sand Point - Seattle
•Federal Civil, Criminal and Appellate cases
also

62. Searching Washington Courts
• Start with AOC Site:

63. Searching Washington Courts
(Cont’d)
• Odyssey – New Online Court System
• King and Pierce County Will Not
Participate

64. Searching Washington Courts
(Cont’d)
• Asotin
• Columbia
• Franklin
• Garfield
• Lewis
• Snohomish
• Thurston
• Whitman
• Yakima
Counties Currently Online
With Odyssey:

65. Searching Washington Courts
• SCOMIS:
•County by County
–Civil - Case Type 2
–Criminal – Case Type 1
–Juvenile – Case Type 8
–Domestic – Case Type 3
–Probate – Case Type 4
•CourtTrax, CourtLink & Others…

66. Searching Washington Courts
• JIS
•Non-Civil Cases Statewide
–Full Name, DOB, Physical Description,
Address
•Small Claims Cases

67. Searching Washington Courts
• JIS – Continued
• Non-Civil Case Types Include:
• Traffic Infractions
• Misdemeanors
• Gross Misdemeanors
• Felonies
• Anti-Harassment Orders
• Domestic Abuse Cases
• Dissolution of Marriage Cases

68. Searching Washington Courts
• ACORDS – Appellate
• This is a separate system, but is accessible with JIS-
Link logon credentials.
•Court of Appeals
•State Supreme Court

69. Asset & Encumbrance-Related
Washington Court Records
• Garnishments
• Judgments
• Child Support Obligations
• Unpaid Court Fines
• Civil Cases Pending Awards
• Probate

70. UCC Searches
• A UCC-1 financing statement (an
abbreviation for Uniform Commercial
Code-1) is a legal form that a creditor files
to give notice that it has or may have an
interest in the personal property of a debtor
(a person who owes a debt to the creditor
as typically specified in the agreement
creating the debt).

71. UCC Searches

72. WA UCC Filings
• Secured Party
• Difficult to get details by Secured Party
• Debtor Party
• Collateral
• Effective Date
• Lapse Date
https://fortress.wa.gov/dol/ucc/

73. Other Searches
• News:
• NewsLibrary.com
– Nationwide
– Full Text
– Boolean Operators/ Advanced Search Options
– National/Regional/Local News
– 5000+ sources
• Social Media
• Google Searches

74. Asset Defense Strategies
• Real property owned in name of trusts
• Bleeding off equity (second mortgages)
• Fake bankruptcies
• Real property/vehicles leased versus owned
• Real property listed in wife’s maiden name
• Real property listed in other relative’s name

75. Asset &
Encumbrance
Investigation
Process Flow Chart

86. Remember to Visit My
Website!
• Sample Reports
• Forms
• Presentations
• Articles
• Tell Others!

87. Questions??