Dear Members:
I have noticed an increase lately in the amount of discussion group posts concerning services requested for "asset searches" and "bank info"
searches. Please listen to my story and maybe you too can avoid the perils of making a bad decision (like I did!).
For the past 18 months, I have been on the pointy end of a spear in U.S. District Court as a co-defendant in a case involving allegations of invasion
of privacy and specifically violations of the Fair Credit Reporting Act (FCRA). The court cost exceed $260,000 so far (my share is $40,000+) and the
case is scheduled to be heard by a jury some time this spring. Oh!...did I mention that my E&O carrier tanked and was liquidated by the Pennsylvania
Superior Court (the carrier was Reliance Insurance out of Chicago) and it has not paid my attorney since October 2001).
The genus of this case was a request (from a referral by an established attorney client) to conduct a "complete asset check" of defendant in a very
convoluted state Superior Court (civil) case involving allegations of fraud and malfeasance by a bar card attorney.
The language of the case assignment letter from the attorney (one stinking sentence!) who hired me is still being debated in endless motions to the
Federal Judge hearing the case about the definition of "permissible purpose" under FCRA as it applies to this case. Semantics is a high art form in this
case and it will probably wind up as an infamous FTC "Opinion Letter" (I'm just glad that it won't be entitled the FTC "Pruitt Opinion Letter").
If you have not read the text of The Financial Services Act of 1999 (H.R. 10) or Gramm-Leach-Bailey Act as it is more commonly called; open your
favorite search engine and read it from tip-to-toe. It clearly identifies the v-e-r-y narrow exceptions to the pretexting of banking information.
***Let's stop kidding ourselves!*** When an investigator posts a request for "asset search" or "banking
info," that is usually a veiled request for
someone to risk their neck to break the law and obtain confidential consumer banking information. I am in no way taking the moral high road on this
issue; nor am I casting the proverbial first stone. I have done my share of "asset
searches," but that does not mean that I don't respect the current
laws of the land.
As an investigator, whose every practice is under a microscope; I can tell you with absolute certainty that there is a young, hungry U.S. Assistant
Attorney (or two...or three, you get the idea!) out there that is trolling for a good case to prosecute involving blatant violations of G-L-B by some
hard-working, but equally hungry private investigator.
Let me quote the Past President (Ms. Francie Koehler) of the California Association of Licensed Investigators (CALI):
"Personal privacy has become an important national issue. Licensed private investigators and information providers are TARGETS of privacy advocates and
prohibitive legislation."
Add some $500 an hour attorneys and the U.S. Attorneys' Office to that list as well. Your E&O policy DOES NOT cover punitive damages and that's what
they will be after (the max fine is only $1,000 per violation of FCRA) to punish you with. There is no cap on the damages...can you count that high!?
If you don't believe me; call your carrier and ask if "punitive damages" are covered by your policy.
Bottom Line: The next time a client bangs on your door asking for an "asset search" or "banking info"; calmly tell the shark to file a SDT or OEX and get the
info the LEGAL way. Trust me, the shark will screw you over when the gold-badge guys come knocking!
I hate to say it (or think it!), but there are some cooperative investigators in our midst who are assisting with the efforts to build a
book on some of our fellow investigators. "Touch Tone" won't be the last headline grabber or career builder case out there. Some "asset search"
request...particularly in our discussion groups...are just a facade to build a case. Yes...your e-mails fall under discovery...don't test the
system...you will lose the hard way!
Don't say that I didn't warn you...
** Permission to Repost Granted - Stay Safe!
ALAN PRUITT, PI
CA PI 17984
apruitt@webcognita.com
877.800.1549 (Voice/Fax)
"Keeping Your Private Life Private."