At Lux Analysis, we believe that every financial record tells a story. We provide forensic accounting, fraud investigation, litigation support, and financial analysis services to attorneys, businesses, trustees, and individuals facing complex financial matters.

When a case involves disputed transfers, questionable expenses, or alleged financial misconduct, counsel typically asks: what happened to the money? But there is another question that can be just as important:  who had the authority to move it? Bank and credit card statements can show what transactions occurred. They may not, however, tell you who was authorized to conduct those transactions at the time. That is where signing-authority records can become critical.

Follow the Authority, Not Just the Money

Changes to bank account signers and credit-card authorized users can help establish a timeline of who had access to financial accounts and when that access began or ended.

For example, if an individual was added as an authorized signer shortly before significant transfers occurred, that change may warrant further investigation. Conversely, if someone allegedly lost access to an account but continued making transactions afterward, the records may help establish whether those transactions were actually unauthorized.

Because authority is evidence of control, here are a few key points to keep in mind:

• Establish the timeline of signing authority for each relevant bank and credit card account.

• Request historical authority records, not just current signer or authorized user information.

• Obtain underlying authorization documents, including signature cards, account opening documents, corporate resolutions, amendments, and authorized user records.

• Compare changes in authority with disputed transactions to identify timing and potential connections, as well as authority changes occurring around terminations, ownership disputes, management changes, or other significant events.

• Distinguish between account ownership, signing authority, and actual account access.

• Determine whether individuals continued accessing accounts after their authority was revoked.

Conclusion

In a financial investigation, following the money is only part of the story. Understanding who had the authority to access and move the money and when that authority changed can provide a critical link between the transaction and the person behind it.

The transaction tells you what happened. The authority records may help tell you who could make it happen.

Need a Template? If you need a detailed bank record request template for your subpoenas, we’re happy to help. Email us and we’ll send you a copy to streamline your next request.