Tuesday, July 04, 2017 1:12:36 PM
The illegal transfer of property to another party in order to defer, hinder or defraud creditors, or to put such property out of the reach of a creditor. Fraudulent conveyance, for instance, would occur if an individual sold all of his possessions for an insignificant amount of money to a spouse, relative, business partner or friend.
Civil cases of fraudulent conveyance can be tried in a court of law. If the transfer of property is determined to be fraudulent, the court can require the person holding the assets (the person to whom the conveyance was made) to hand the assets, or an equivalent monetary value, over to the creditor.
Also called fraudulent transfer.
BREAKING DOWN 'Fraudulent Conveyance'
In order for somebody to be found guilty of fraudulent conveyance, it must be proven that the accused's intention for transferring the property was to put it out of reach of a known creditor. Two types of fraudulent transfer exist: actual fraud and constructive fraud. Actual fraud occurs when a debtor intentionally donates or rids himself of assets as part of an asset protection scheme.
Constructive fraud refers to fraud that occurred unintentionally or in a manner that was not intended to be fraudulent. The first case on fraudulent transfer law dates back to the late 1500s, when an English farmer tried to defraud his creditors by selling his flock of sheep while remaining in control of the flock. At shearing time, the man shore the sheep and marked them as his despite the fact that he had supposedly sold the sheep to another farmer.
Read more: Fraudulent Conveyance http://www.investopedia.com/terms/f/fraudulentconveyance.asp#ixzz4lsrhBgNG
Follow us: Investopedia on Facebook
Endexx Corporation (EDXC) Leverages Global Market Trends and Legislative Reforms to Spearhead Growth in the Cannabis and Plant-Based Wellness Sectors • EDXC • Mar 27, 2024 3:01 PM
Applied UV, Inc. Announces Pricing of $2.76 Million Registered Direct and Private Placement Priced at the Market Under Nasdaq Rules • AUVI • Mar 27, 2024 2:51 PM
POET and MultiLane Collaborate to Develop High-Speed Pluggable Transceivers for AI Networks • POET • Mar 27, 2024 10:52 AM
Maybacks Global Entertainment Opens 23 More Stations in Important Major Cities • AHRO • Mar 27, 2024 9:00 AM
NxGen Brands Inc. Forecast to Deliver 140% Growth in Q1 2024 • NXGB • Mar 27, 2024 7:30 AM
Kona Gold Beverages, Inc. Strategic Advancements: Covert LLC Introduces Federally Legal D9 Gummies and Revamps Innovative eCommerce Platform, Propelling Toward $12 Million Annual Revenue Goal • KGKG • Mar 26, 2024 8:30 AM