CFL Asset Tracing & Recovery

Question 1

What type of court order is specifically designed to freeze a defendant's assets to prevent dissipation pending the outcome of litigation?

Accepted Answer

Mareva injunction (freezing order)

Answer

Writ of mandamus

Answer

Writ of certiorari

Answer

Order of attachment only available post-judgment

Question 2

Which doctrine allows courts to disregard the separate legal existence of a corporation to reach assets held by its controlling owner?

Accepted Answer

Alter ego doctrine

Answer

Business judgment rule

Answer

Successor liability doctrine

Answer

Respondeat superior

Question 3

In financial litigation, what is the primary purpose of 'tracing' misappropriated funds?

Accepted Answer

To connect specific identifiable assets to the original misappropriated funds

Answer

To establish criminal intent beyond a reasonable doubt

Answer

To determine the debtor's overall net worth

Answer

To establish the chain of title in real property transactions

Question 4

What is a constructive trust in the context of asset recovery?

Accepted Answer

An equitable remedy imposed by courts to prevent unjust enrichment by requiring the holder to return assets

Answer

A trust created by a formal written trust agreement between parties

Answer

A statutory trust created by the Uniform Trust Code for minor beneficiaries

Answer

A tax-deferred trust structure used for charitable remainder purposes

Question 5

Under the civil RICO statute (18 U.S.C. § 1964(c)), what must a plaintiff establish to pursue asset recovery?

Accepted Answer

A pattern of racketeering activity consisting of at least two predicate acts that caused injury to the plaintiff's business or property

Answer

A prior criminal conviction of the defendant for any federal offense

Answer

Exclusive federal court jurisdiction with damages exceeding $1 million

Answer

Proof beyond a reasonable doubt of at least one predicate act

Question 6

Which post-judgment discovery mechanism compels a judgment debtor to appear and answer questions under oath about their assets and finances?

Accepted Answer

Examination of judgment debtor (debtor's examination)

Answer

Writ of execution

Answer

Request for production of documents

Answer

Writ of attachment

Question 7

What is a 'charging order' and how does it function in asset recovery against a member of an LLC?

Accepted Answer

A lien that attaches to the debtor's distributional interest in an LLC, entitling the creditor to receive any distributions made to that interest

Answer

A court order directing payment from a specific bank account

Answer

An order seizing and transferring the debtor's LLC membership rights to the creditor

Answer

A court-imposed management injunction preventing the debtor from operating the LLC