Justice Anil Singh
Defendants moved for summary judgment dismissing the complaint in this fraudulent conveyance action. Plaintiff alleged Ancona acted with fraudulent intent when he conveyed real property to co-defendants transferring the properties to insulate himself from the judgment plaintiff obtained against him in a different action. Plaintiff alleged Ancona’s transfers rendered him insolvent. The court noted badges of fraud existed in this case, presenting an issue of fact of whether defendants acted with fraudulent intent. Ancona claimed that as he owned the same percentage in the transferees as he did in the real property before the transfers, he merely exchanged one type of asset for another of equivalent value, thus plaintiff’s interest as a creditor was not injured. The court disagreed noting a creditor did not have as much access to membership interests as it did to stock, finding where property was exchanged for membership interests, the circumstances could be indicative of an intent to hinder or defraud. Thus, the exchanges between Ancona and the limited liability defendants raised an issue of fact as to intent to hinder or delay creditor’s access. Hence, defendants’ motion for summary judgment was denied.
