Transferring property or money to a friend or relative while confronted with a civil lawsuit not only subjects the person to a crime of fraudulent conveyance, but it can also subject the recipient of the property to a civil lawsuit. Transferring assets when faced with a civil lawsuit is not the answer. The Khachatourians Law Group specializes in effectively resolving the civil lawsuit in a cost effective manner depending on the circumstances of the case. An illegal conveyance of funds and real property will only subject the defendant to additional exposure. California Penal Code section 155 makes fraudulent conveyance by a judgment debtor criminal. Penal Code 155 states as follows:
“(a) Every person against whom an action is pending, or against whom a judgment has been rendered for the recovery of any personal property, who fraudulently conceals, sells, or disposes of that property, with intent to hinder, delay, or defraud the person bringing the action or recovering the judgment, or with such intent removes that property beyond the limits of the county in which it may be at the time of the commencement of the action or the rendering of the judgment, is punishable by imprisonment in a county jail not exceeding one year, or by fine not exceeding one thousand dollars ($1,000), or by both that fine and imprisonment.
(b) Where the property so concealed, sold, disposed of, or removed consists of a stock in trade, or a part thereof, of a value exceeding two hundred fifty dollars ($250), the offenses shall be a felony and punishable as such.”
If you have a pending civil case, do not start conveying property and funds to relatives. Contact Arthur Khachatourians for a defense consultation at 818-590-8294.