Monday, September 15, 2008

Fraudulent Conveyance And Related Charges

The Illinois ARDC has filed a complaint alleging that the lawyer, an equity partner in a law firm that had represented approximately 2,500 plaintiffs in product liability litigation, was sued for $1.7 million in loans that he had guaranteed. The complaint alleges that the attorney transferred his assets to another attorney with whom he "lived together and had a personal relationship." After an adverse judgment, the lawyer declared bankruptcy and is alleged to have made false denials of the transfer of assets.

According to the charges, the civil court addressed the fraudulent conveyance issue and concluded:

The court deemed Respondent's and Stackler[the friend]'s explanation for the transfers, i.e., that the transfers were in consideration for loans Stackler had purportedly made to Respondent and his law firm, "inherently unbelievable." The court ruled that the transfers were fraudulent and made with the "actual intention of hindering, delaying or defrauding [Respondent's] creditors," and that the various agreements executed in connection with the alleged assignment and transfer of Respondent's assets to Stackler "were all executed between [Respondent] and Stackler as an elaborate hoax to put his assets into her hands and shield them from his creditors."

The bankruptcy court denied the lawyer a discharge in bankruptcy. (Mike Frisch)

http://lawprofessors.typepad.com/legal_profession/2008/09/the-illinois--2.html

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