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
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 …
Fraudulent Transfer and Liability to a Nursing Home
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Fraudulent Transfer Attorney Here’s an interesting case taken up on appeal between a nursing home and the owner of a home who was accused of being part of a fraudulent transfer. The nursing home owners alleged that the defendant(s) violated the Uniform Fraudulent Transfer Act (UFTA), N.J.S.A. 25:2-25, with respect to the transfer of property owned by him to his children 1 ½ years prior to admission to their long term care facility. At the time the parent executed the deed, he was ninety years old, but was in good physical and mental health, travelled alone overseas every six months, was in control of his own life, …
Does Death Destroy a Fraudulent Transfer Claim?
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Monmouth County, Freehold, NJ Fraudulent Transfer Attorney A federal district court recently decided a case regarding transfers made by a power of attorney to himself that was found to be a violation of the Fraudulent Transfer law. One of the issues in this case which I think may be applicable to New Jersey cases is whether a claim of fraudulent transfer against the agent who has (had) power over another’s finances survives the death of the person who owned the finances. In this case a nursing home accepted Medicaid and it accepted a resident into the home. The agreement that was signed required that she pay …
Date of Recording of Deed Determines When Property was Transferred Under the New Jersey Fraudulent Transfer Law
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?
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)
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)
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
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
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 …