Fraudulent Conveyance

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Fraudulent Conveyance

The transfer of property to another party in order to defraud a creditor. For example, if a person owes the bank for a loan for $15,000, the person may give or sell $15,000 worth of property to a relative, often while still maintaining use of the property, in order to prevent the bank from being repaid. Legally, fraudulent conveyance requires the intention to defraud a creditor.
References in periodicals archive ?
Fraudulent conveyance law presents a difficult conceptual issue: If a debtor fraudulently conveys a thing to the garnishee, does the debtor still own the thing?
38) The seminal work in this debate was Douglas Baird and Thomas Jackson's 1985 article Fraudulent Conveyance Law and Its Proper Domain, which argues vehemently that FTL should not be applied to LBOs.
Haber has also been the mediator in over 100 preference and fraudulent conveyance lawsuits seeking recovery of varying amounts from as low as $25,000 to as high as $19 million.
Two obvious questions are 1) whether the transaction is such a sham that the grantor's status as owner continues after the sale, along with consequent liability, and 2) whether the conveyance can be set aside under state statute (for example, under a fraudulent conveyance statute) or common law rules.
92) However, a transfer into a trust in which the debtor-settlor retains any right to assets that he claims are not available to creditors is more likely to be suspect as a fraudulent conveyance.
Yet, while the mavens of Wall Street reveled in the glory of this megadeal, that same day a federal court in Illinois issued a decision representing the latest in a series of judicial opinions dealing with a force even greater than the behemoth LBOs - the Bankruptcy Code, particularly its laws on fraudulent conveyances, as applied to LBOs of companies which subsequently become bankrupt.
Ventricelli has testified to issues pertaining to accounting irregularities, asset misappropriation schemes, fraudulent conveyances, breach of contract, breach of fiduciary duties and economic damages.
com)-- The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, has announced today that David Berliner, Partner, BDO Consulting, will speak at a 2-hour webcast entitled “A Discussion of Current Developments Relating to Preferences and Fraudulent Conveyances in Bankruptcy Cases LIVE Webcast.
The United States also filed a claim under the Federal Debt Collection Procedures Act against Stevens and Kulick, alleging that excessive salaries they received beginning in 2001 constituted fraudulent conveyances from Imperial of assets that should have been paid to the federal government.
A bankruptcy case may require a search for preferential transfers or fraudulent conveyances.
The majority discerningly distinguishes between fraudulent conveyances, voluntarily made by a debtor for insufficient value (or for no value) to defeat creditors, and involuntary transfers like mortgage foreclosures, where the debtor has no control over the price paid or who pays it.