Understanding the Tort of Conversion

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, a Freehold Township, Monmouth County New Jersey Fraud & Conversion Attorney A real estate investor residing in London, England, entered into a real estate deal with a “fraudster” (meaning a shady character).  Each agreed to provide $2.5 million towards the purchase of a property in Irvington, New Jersey.   Plaintiff’s alleged that at the fraudster’s direction, he wired $2,412,163.50 to the attorney trust account of a New Jersey lawyer and, thereafter, at fraudster’s direction, the law firm disbursed all of the funds for other purposes.   These payments benefitted fraudster’s investments in other properties plus a payment of a fee to the law firm.   Plaintiff alleged that the Irvington purchase the parties had agreed to acquire was never …

Forgiving a Debt Can Be Fraudulent Under the New Jersey Fraudulent Transfer Law

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq., of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Fraudulent Transfer  Law Attorney Debtors often seek to evade creditors Creditors want to be paid what is owed to them The New Jersey Fraudulent Transfer Law addresses conflicts between debtors and creditors The New Jersey Fraudulent Transfer Law The Uniform Fraudulent Transfer Act (UFTA), N.J.S.A. 25:2-20 -34, provides that a transfer made by a debtor can be fraudulent as to a creditor whose claim exists before the transfer it made. What’s important is whether the debtor made the transfer without “reasonably equal value” and the debtor was insolvent or became insolvent as a result of the transfer.   The law defines “reasonably equal value” as …

Date of Recording of Deed Determines When Property was Transferred Under the New Jersey Fraudulent Transfer Law

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Fraudulent Transfer Law Attorney A recent case came down from our state’s Appellate Division which held that the date of recording a property transfer deed, not the date of deed signature, determines whether a fraudulent transfer lawsuit is considered timely.  In Nationwide Registry & Sec. Ltd. v. Melhem, an individual ran up some steep debts while gambling at the Las Vegas Hilton. The defendant wrote out some checks to the Hilton to make good on the debt, but the checks were dishonored.  This led the hotel to pursue the delinquent debtholder in court.  Later, the Hilton assigned the debt to Nationwide Registry & Sec. Ltd., the plaintiff …

WHAT ARE THE DIFFERENT FORMS OF CONSUMER FRAUD?

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. a New Jersey Consumer Fraud Attorney NJ Consumer fraud takes on many different forms.  Luckily, there are attorneys and lawyers who can help you with consumer fraud in the event that you are victim to a scam or theft.  Most people are aware of the many different scams and schemes that are a part of life, but many good people have fallen prey to them over the years.  Scammers range from simple pickpockets to scammers who set up large, multinational Ponzi schemes.  One of the more famous examples of a scammer is Bernie Madoff, who set up a Ponzi scheme that caused many people around the world to lose large sums of money. Consumer fraud …

THE NEW JERSEY CONSUMER FRAUD ACT AND NEW JERSEY NURSING HOMES (Part I)

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. a New Jersey Consumer Fraud Lawyer The Admission Agreements for nursing homes under the consumer fraud act was recently analyzed by the court. The New Jersey CFA prohibits: “The act, use or employment by any person of any unconscionable commercial practice, deception, fraud, false pretense, false promise, misrepresentation, or the knowing, concealment, suppression, or omission of any material fact with intent that others rely upon such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise or real estate, or with the subsequent performance of such person as aforesaid, whether or not any person has in fact been misled, deceived or damaged thereby…. To sustain a claim of violation of the …

THE NEW JERSEY CONSUMER FRAUD ACT AND NEW JERSEY NURSING HOMES (PART II)

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. a New Jersey Consumer Fraud Lawyer Are New Jersey nursing homes subject to the Consumer Fraud act?  The answer is, no! Under the learned professional exception of New Jersey law, our courts have held that hospital services do not fall within the purview of the CFA as hospitals in New Jersey are strongly regulated. In one case, a hospital sued the defendants in the special civil part to collect for services rendered to their son. Defendant filed a counterclaim under the CFA alleging unlawful or unethical medical practices. The trial court granted summary judgment in favor of plaintiff. On appeal, as a case of first impression, the court drew upon precedent established in other jurisdictions …

FRAUDULENT TRANSFERS AND THE U.S. BANKRUPTCY CODE

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. a New Jersey Fraudulent Transfer Attorney As previously posted, there are two types of fraudulent transfers. The second type of transfer does not necessarily involve any actual wrongdoing, meaning no fraudulent intent involved.  It is a common trap which honest, but under informed debtors fall when filing a bankruptcy petition without an attorney. Particularly devastating and not uncommon is the situation in which an adult child takes title to the parents’ home as a self-help probate measure (in order to avoid any confusion about who owns the home when the parents die and to avoid losing the home to a perceived threat from the state). Later, when the parents file a bankruptcy petition without recognizing …

THE NEW JERSEY CONSUMER FRAUD ACT AND NEW JERSEY HOSPITALS

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. a New Jersey Consumer Fraud Lawyer The question whether a hospital’s admissions contract and collection methods violated the New Jersey Consumer Fraud Act (CFA) was addressed. The federal court examined New Jersey’s learned professional exception to determine if collection efforts by a hospital are “services” and thereby excluded from prosecution under CFA. The plaintiff patient was indigent, had no health insurance and did not qualify for Medicare or Medicaid. At the time of his admission, he signed a contract guaranteeing payment of unspecified charges that read, in relevant part, “I also guarantee payment of all charges and collection costs for services rendered….” The defendant billed the plaintiff for the services rendered, in accordance with the …

UNDERSTANDING THE TERM FRAUDULENT CONVEYANCES UNDER NEW JERSEY LAW

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. a New Jersey Fraudulent Transfer Attorney There are two kinds of fraudulent transfers. The standard example is an intentional fraudulent transfer. By this I mean a transfer of property made by a debtor with intent to defraud, hinder, or delay his or her creditors. The second is a constructive fraudulent transfer. Generally, this occurs when a debtor transfers property without receiving “reasonably equivalent value” in exchange for the transfer if the debtor is insolvent at the time of the transfer or becomes insolvent or is left with unreasonably small capital to continue in business as a result of the transfer. Unlike the intentional fraudulent transfer, no intention to defraud is necessary. In bankruptcy, the Bankruptcy …

BUSINESS FRAUD CASES IN NEW JERSEY

HNW Business Law, Fraudulent Transfer Litigation

By Fredrick P. Niemann, Esq. a New Jersey Fraudulent Transfer Attorney Almost all businesses will experience fraud at some point in time.  Fraud can be as simple as the employee who steals money from the cash register, or as complex as a false billing/electronic embezzlement case.  It is important that you are aware of what is going on in your business.  However, it is impossible to watch everything that goes on. Taking action to reduce the opportunity for fraud is important, but can’t stop all opportunities. There are many different types of fraud, including: false billing, advance fee fraud, embezzlement, forgery, and investment fraud. Thus, it is hard to completely avoid fraud altogether.  Most businesses have fallen prey to, or …