A helpful concept of New York law
One helpful concept of New York law is that a corporation is initially considered a trust fund for the payment of creditors. When it violates that trust and pays excessive funds to a principal or any insider, a proper suit can be brought against the principal and possibly the recipient of the funds, the transferee. The relevant legal standards are set forth in New York law known as the Debtor and Creditor Law
, which has long established standards to enable creditors to recover money wrongfully transferred by a customer who did not pay them. A useful term to navigate the attempt to prove that fraudulent conveyances occurred is “badges of fraud,” which is a concept that has evolved to point to numerous factors that are frequently evident where an improper transfer has occurred, such as the close relationship between the transferor and the transferee, the transferor’s knowledge of the creditor’s claim, the inadequacy of the consideration for the transfer, and sometimes the retention of control by the transferor after the conveyance. This is some of the work I do
and I am sure I can help your business in Maryland to recover money
from people and companies throughout New York
. Please call me, Steven D. Greif, at 516-213-2200 or Photo credit: Highsmith, Carol M., 1946-, photographer Photographs in the Carol M. Highsmith Archive, Library of Congress
, Prints and Photographs Division.