Piercing trusts and competing over $1.2 million dollars in the Trevor Cook asset recovery case–

• “Concealing Assets In More Than 150 Trusts?” describes some matters in which assets were fraudulently hidden.  When available, the right to pierce a trust could lead to a recovery in these situations.  In New York for example, Courts can pierce the trust veil where the trust is formed for an illegal purpose and there is no separation between the beneficiary and the trustee.A trust may too be pierced under New York law if the trust is used to conceal assets or in fraudulent conveyances, to shield funds from adverse judgments.  Babitt v. Vebeliunas (In re Vebeliunas), 332 F.3d 85, 91 (2d Cir. 2003).
• A dispute has arisen among claimants trying to interdict $1.2 million dollars maintained by securities fraudster / Ponzi schemer Trevor Cook in a UBS financial account in Switzerland.  A memorandum of law reveals that both the Trevor Cook receiver and Mr. Charles D. Hendrickson of Forest Lake, Minnesota, have asserted competing claimsagainst the $1.2 million:

  (To Read The Memo, Click Below)

  

(Edited July 12, 2011)

Copyright 2011 Fred L. Abrams