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Property transfers to bankrupt's director's spouse set aside as undervalued, preferential, and fraudulent conveyances.
The plaintiff, as assignee of a trustee in bankruptcy, brought a motion for summary judgment seeking to set aside the transfer of six properties from the bankrupt corporation to the spouse of its sole director.
The transfers occurred less than three months before the corporation filed a notice of intention to make a proposal in bankruptcy.
The court found that the transfers were made at undervalue between non-arm's length parties, constituted a fraudulent preference, and were fraudulent conveyances.
The court declared the transfers void and ordered them set aside, subject to a further hearing regarding a mortgage on some of the properties.
