Spotting the Signs: How to Detect Fraudulent Transfers

The Expert Podcast

Topic: What is a fraudulent conveyance and how does it affect a lawsuit or judgment you may have against somebody?

Disclaimer: We are not attorneys and are not giving legal advice. However, as licensed private investigators, we often search for fraudulent conveyances.

Definition: A fraudulent conveyance occurs when the losing party in a bankruptcy case, lawsuit, or judgment starts moving assets out of their ownership.

Example: If you have a lawsuit claim against someone with assets that could pay off the claim, but they sell, transfer, or give them away, they are putting those assets out of your reach.

Case Study: Johnson & Johnson

• The company lost a lawsuit related to talc products causing cancer.
• They are going forward with a third bankruptcy plan to settle these lawsuits.
• Allegedly, Johnson & Johnson transferred billions of dollars of assets to other entities to hinder, delay, and defraud the plaintiffs.

Implications:

• This manipulation of assets sidesteps obligations and is what a fraudulent conveyance aims to achieve.
• Fraudulent conveyance can occur in both large cases (like Johnson & Johnson's billion-dollar case) and smaller ones (such as a $15,000 lawsuit).
• If a debtor transfers assets like money in the bank to avoid paying a judgment, it could be considered a fraudulent conveyance.

Advice:

• If you have a claim against someone or are a bankruptcy creditor, ensure you are searching for any fraudulent conveyances.
• Contact us for more information on how to perform asset tracing and research to protect your judgment claim from being weakened by such activities.

Call to Action:

• Contact us below for more information on how to do that research and asset tracing.
• For a one-on-one private video consultation with an expert, visit ActualHuman.com. We want to listen to your story, hear your questions, and provide expert advice on your situation.