In forensic financial investigations, trust disputes, and bankruptcies involving lien tracing or preference claims, account transfers and the commingling of funds from different sources can pose evidentiary challenges in following the money to prove legal claims. Tracing analysis can often help bridge the gap when the factual record is incomplete. However, the wide range of tracing rules – many with competing goals – and the lack of accepted criteria can pose significant challenges when it comes to tracing rule selection.
In a recent article published by the American Bankruptcy Institute’s ABI Journal, Brattle Principals Paul Hinton and Dr. Alberto Vargas discuss tracing rule selection and implementation issues with untangling commingled fund flows. They provide an overview of various alternative tracing rules and when they are used, and also highlight why there are circumstances where tracing experts are needed to justify rule selection and implementation in the context of individual complex cases.
The authors also recently discussed funds tracing in an episode of Brattle’s podcast, The Brattle Exchange.
The full article, “Untangling Commingled Fund Flows: Tracing Rule Selection and Implementation Issues,” is available below.View Article