653 F. Supp. 1388 (S.D.N.Y. 1987)
FACTS
P, ACLI, sues D, Daniel Rhoades for judgment of over $1,500,000.
D conveys property to sister.
D --> house ($325,000) --> D's sister (paid $1).
D and sister were tenants in common of the property (D 3/5, D's sister 2/5).
ISSUE
-Was the conveyance of a house valued at $325,000, sold for $1, a fraudulent conveyance?
HOLDING
-Yes. The conveyance was made with actual intent to defraud P.
ANALYSIS
-Here we are dealing with family members. In an intrafamily transaction there is a heavier burden on the transferee to establish fair consideration for the transfer.
-Here the transfer was made a day before the judgment.
-Conveyance was made in secret.
-Actual intent is not required to set aside the fraudulent transfer.
-D's sister retains her 2/5 ownership as tenant-in-common.
FACTS
P, ACLI, sues D, Daniel Rhoades for judgment of over $1,500,000.
D conveys property to sister.
D --> house ($325,000) --> D's sister (paid $1).
D and sister were tenants in common of the property (D 3/5, D's sister 2/5).
ISSUE
-Was the conveyance of a house valued at $325,000, sold for $1, a fraudulent conveyance?
HOLDING
-Yes. The conveyance was made with actual intent to defraud P.
ANALYSIS
-Here we are dealing with family members. In an intrafamily transaction there is a heavier burden on the transferee to establish fair consideration for the transfer.
-Here the transfer was made a day before the judgment.
-Conveyance was made in secret.
-Actual intent is not required to set aside the fraudulent transfer.
-D's sister retains her 2/5 ownership as tenant-in-common.
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