Monday, January 26, 2009

Please, Somebody Tell Me This Is Not A Legal Dodge

In an attempt to protect assets from civil litigation, Former Lehman exec, Fuld, sold his 13.3 million dollar home to his wife for $100 just last November. Seeing as how the sh!t had already hit the fan at Lehman's, how can this possibly be a legal way of shielding this asset?

Oh, and just so you know, Fuld received $22,000,000.00 in compensation in 2007 from Lehman's, so that house was just pocket change. How many people do you know who can afford their entire house on a fraction of one year's salary, and a $13,000,000 one at that?

Our legal system is slow to process cases, especially when wealthy defendants can use their resources to slow everything down. I wonder how long Madoff will be living in his luxury home. And how long will the Fulds keep their Florida mansion? Transferring the title to his wife ought to slow things down a bit, huh?

1 comment:

Steve said...

It will slow things down, but probably not completely protect him. B/c she is his wife, what is hers is his and vice versa. Also, many times juries and judges will look at curious financial decisions like this and if they look fishy, the courts can rule that it was a CYA move and reverse or put a lein against the property. Although, I'm no lawyer, just a G-man. :)