Defending fraudulent transfer actions over development project land after a large real estate investment fraud

After investment fraud surfaced in a large real estate development project, title to one project site was transferred to an entity that investors in that site had formed to recover their investments, and other investors sued to set aside the transfer. Attorney Jaehoon Lee represented the entity that received the project land and the related investors in multiple civil lawsuits.

The key issues were whether a transfer of title made to recover investments was a fraudulent transfer against other creditors, and whether a fraudulent transfer could exist even where the secured debt under senior mortgages exceeded the value of the property.

Also at issue were whether the limitation period for the creditors' right of revocation had expired, whether the entity and the investors that received the property acted in good faith, and whether the transfer agreement was a sham transaction.

Attorney Lee analyzed the investment structure of the large development project, how investments were recovered for each project site, the status of the entity formed by the investors, and the process by which title to the property was transferred.

In particular, he compared the secured debt under the mortgages on the project land with the value of the property, reviewed the current use of the land and the limits on its development, and developed legal arguments on whether a fraudulent transfer had occurred.

He also reviewed the law on the limitation period for the creditors' right of revocation, the good faith of the parties that received the property and the validity of the transfer agreement, and handled the related appeal and the separately filed civil lawsuits.