The trustee in bankruptcy for several related real estate development companies brought applications to determine the priority of claims against the proceeds of a sold property and to set aside various payments and security granted to an investor, Dr. Goldfinger, as transfers at undervalue, fraudulent conveyances, or unjust preferences.
The court allowed some of the proofs of claim while disallowing others or requiring further evidence.
The court dismissed the trustee's claim to set aside a $2.5 million settlement payment to Goldfinger, finding it was made at arm's length and without intent to defraud creditors.
However, the court set aside a $471,000 payment to Goldfinger as a fraudulent conveyance, finding it was made with the intent to defeat another secured creditor, and ordered Goldfinger to repay the amount to the bankrupt estate.
