News & Insights

Sher Tremonte Seizes Assets of Company’s Principal, Principal’s Spouse and Affiliates on Behalf of Judgment Creditor

On October 6, 2016, Sher Tremonte obtained a decision and order from the Honorable Paul A. Engelmayer of the Southern District of New York granting the turnover of assets fraudulently conveyed from a company to its principal, the principal’s spouse, a trust established for the benefit of the principal, and a corporate affiliate. The court ruled that the respondent-debtor, Anza Capital LLC, had fraudulently conveyed over a quarter million dollars to the detriment of Sher Tremonte’s client. The fraudulent payments were used for a luxury car, Manhattan apartment, a European vacation, and transferred to foreign entities in Cyprus, Macedonia, and the U.K. Under principles of New York Debtor and Creditor law, the court shifted the burden of proof to the respondent-debtor and applied the “sham issue of fact” doctrine. Finding a factual hearing unnecessary, the court characterized the respondent’s explanation of the transfers as “lame conjecture . . . insufficient to create a triable issue fact . . . [and] not cognizable as a matter of law.” Read the full opinion here.