Los Angeles Fraudulent Transfer of Business Assets Attorneys

Are You in Need of a Fraudulent Transfer of Business Assets Defense Attorney?

Business owners regularly transfer assets for legitimate reasons. Companies sell property, restructure operations, move assets between affiliated entities, repay debts, compensate employees, and reorganize ownership. But when prosecutors or investigators come to believe that a transfer was designed to hide assets from creditors, courts, bankruptcy trustees, or government agencies, an ordinary business transaction can become the focus of a serious fraud investigation.

The Los Angeles white collar crime attorneys at Werksman Jackson Quinn & Mason LLP represent individuals who are facing serious state and federal criminal investigations. Our attorneys understand how prosecutors build complex financial cases, and we know how to effectively challenge allegations of fraudulent behavior.

Why Choose Us Over Other Fraudulent Transfer of Business Assets Defense Lawyers in Los Angeles?

If investigators, prosecutors, creditors, or a bankruptcy trustee have begun questioning transfers involving your company, it is important to seek experienced criminal defense counsel right away. Werksman Jackson Quinn & Mason LLP has defended clients in serious criminal matters for decades, and our team includes attorneys who previously prosecuted cases for both state and federal authorities.

A defense attorney can intervene before you provide statements that may later be used against you, examine the transactions at issue, communicate with investigators, and begin developing evidence showing the legitimate business reasons behind a transfer.

Here’s what sets our firm apart:

• Firm founded in 1994: Werksman Jackson Quinn & Mason LLP brings decades of criminal defense experience to complex state and federal cases.
• Mark Werksman is a former Assistant United States Attorney and Deputy District Attorney: His background gives him firsthand insight into both federal and state prosecution.
• AV-rated by Martindale-Hubbell: This is their highest rating for ethical standards and legal ability.
• Alan Jackson is a former Assistant Head Deputy: He previously served in the Major Crimes Division of the Los Angeles County District Attorney's Office.
• Partner Caleb Mason brings significant experience and a strong commitment to protecting the rights and interests of our clients.
• Partner Kelly Quinn is a certified specialist in writs and appeals who provides extensive appellate knowledge to complex legal matters.
• Strength in numbers: Clients benefit from a collaborative defense team rather than relying solely on the experience of a single attorney.

Under Investigation for Hiding Assets?

Do not wait for prosecutors to build their case. Call (213) 688-0460 for a free consultation with an experienced criminal defense lawyer.

How a Lawyer Can Help

Fraudulent transfer cases often turn on context. A transaction that appears suspicious when viewed in isolation may have a legitimate explanation when contracts, accounting records, valuations, communications, and the company's financial history are considered.

Our Los Angeles criminal defense lawyers can examine why a transfer occurred, who authorized it, what the recipient provided in return, and whether the transaction was consistent with ordinary business practices.

When a criminal investigation is underway, we can communicate with law enforcement and prosecutors on the client's behalf, challenge investigative methods, evaluate potential constitutional violations, and determine whether the government can prove the elements of any alleged offense beyond a reasonable doubt.

What Is a Fraudulent Transfer?

A fraudulent transfer generally involves transferring property or assets in a manner intended to place them beyond the reach of creditors or other parties legally entitled to pursue those assets. Fraudulent transfer law can apply to transactions involving money, real estate, equipment, ownership interests, intellectual property, securities, and other valuable business assets.

Fraudulent transfer issues commonly arise in civil litigation, creditor disputes, and bankruptcy proceedings. Criminal exposure becomes a concern when authorities believe the transfer was connected to deliberate deception or another criminal scheme.

Actual Fraud and Constructive Fraud

Two important concepts in fraudulent transfer disputes are actual fraud and constructive fraud.

Actual Fraud

Charges of actual fraud focus heavily on intent. A transfer may be challenged when the evidence indicates that the debtor intentionally moved assets to hinder, delay, or defraud creditors.

Because people rarely document an intention to defraud, investigators may rely on circumstantial evidence. They can examine the timing of a transfer, the relationship between the parties, whether the transfer was disclosed, whether the debtor retained control over the property, and what the debtor received in return.

Constructive Fraud

Constructive fraud does not necessarily depend on proving an express intent to deceive. Instead, the prosecution may consider the financial circumstances surrounding the transaction, including whether the debtor received reasonably equivalent value and whether the debtor was insolvent or became insolvent because of the transaction.

Red Flags That May Indicate Fraudulent Transfers

Investigators often look for circumstances sometimes described as indicators or "badges" of fraud. These circumstances can raise questions about a transaction, but their presence does not automatically establish fraudulent intent.

Transfers Made to Insiders

Authorities may scrutinize transactions involving relatives, business partners, company officers, employees, or other insiders because the parties have an existing relationship. However, legitimate businesses regularly transact with insiders.

Transfers Made to Companies Secretly Owned by the Debtor

A transfer may receive increased scrutiny if property is moved to another company that investigators believe is secretly controlled by the debtor. The key questions can include who actually owns and controls the receiving entity, whether ownership was concealed, why the transaction occurred, and whether the transferring business received appropriate value.

Transfers Where the Debtor Did Not Receive Fair Market Value

Selling valuable property for substantially less than it’s worth may cause investigators to question whether the transaction was intended to remove assets from creditors' reach. Market conditions, liquidity problems, the condition of assets, contractual restrictions, and the circumstances surrounding a sale can all affect what an asset is realistically worth.

Transfers That Were Allegedly Hidden From Courts, Creditors, or Tax Collectors

Investigators may examine whether a transfer was omitted from required disclosures or intentionally structured to prevent courts, creditors, bankruptcy trustees, or taxing authorities from discovering it.

Transfers Made by Insolvent Businesses

It is important to remember that insolvency does not establish fraud. Transactions occurring when a company cannot meet its financial obligations can receive particular scrutiny. Investigators may question whether assets were intentionally moved away from creditors when the business was already experiencing severe financial distress.

Transfers That Plunge a Business Into Bankruptcy

A transaction that leaves a company unable to meet its obligations or contributes to a bankruptcy filing may attract scrutiny. Authorities may investigate whether the transaction stripped valuable assets from the company while leaving creditors with little ability to recover what they were owed.

Protect Your Business and Your Future

A fraudulent transfer investigation can threaten your company, finances, reputation, and freedom. Call (213) 688-0460 to discuss your defense.

Defending Against Charges of Fraudulent Transfer

An effective defense begins by separating suspicious circumstances from proof of criminal wrongdoing.

Good Faith and Value

Evidence that a transaction occurred in good faith and involved legitimate value can be central to the defense. Contracts, invoices, appraisals, payment records, corporate resolutions, negotiations, and communications may demonstrate that the transaction was commercially legitimate.

Evidence that the recipient paid value can also undermine allegations that assets were simply being hidden.

Rebutting Badges of Fraud

A prosecutor may point to multiple circumstances as evidence of fraudulent intent. The defense can provide legitimate explanations for each one.

For example:

• A transfer to an insider might represent repayment of a documented loan.
• A rapid sale might have been necessary because the company needed immediate liquidity.
• A below-market transaction might reflect the condition of an asset or limited demand.

Solvency of the Debtor

Whether a business was insolvent at the time of a transfer may be a significant issue. The defense can examine financial statements, cash flow, assets, liabilities, receivables, valuations, and other records to challenge the government's characterization of the company's financial condition. Expert financial analysis may also be appropriate in particularly complex cases.

Statute of Limitations

Legal claims and criminal charges are subject to applicable filing deadlines. A defense attorney can determine which statute of limitations applies to the particular allegations and whether the government or another party waited too long to pursue a claim or charge. The applicable deadline can depend on the legal theory, relevant dates, discovery of the alleged conduct, and other circumstances.

Safe Harbor Provisions

Certain transactions may receive protection under applicable safe harbor provisions. Whether such protection applies depends heavily on the transaction and the particular law being invoked. An attorney can examine the structure of the transfer and determine whether a statutory protection limits or prevents the government's theory.

The Government Failed to Prove Its Case

The prosecution bears the burden of proving every element of a criminal offense beyond a reasonable doubt. Suspicious timing, an insider relationship, financial distress, or an unfavorable transaction may not be enough to secure a conviction.

The defense can challenge the government's evidence concerning ownership, valuation, insolvency, intent, and the purpose of the transfer while exposing gaps or unsupported assumptions in the prosecution's case.

Prosecutorial Misconduct

Prosecutors must comply with constitutional and ethical requirements throughout a criminal case. When misconduct occurs, defense counsel can seek appropriate remedies. Potential issues may include improperly withheld evidence, misleading representations, improper arguments, or other conduct that compromises a defendant's right to a fair proceeding.

What Clients Are Saying About Us

Will go above and beyond to win and defend you - Anonymous (5-Star Avvo Review)

Best attorney to help with my case! He will fight for you all the way. I trusted him with my case and his team to assist me. Will go above and beyond to win and defend you. Highly recommend!!!

An extraordinarily phenomenal defense attorney - T Glaspie (5-Star Google Review)

Mr. Jackson is an extraordinarily phenomenal defense attorney! Extremely professional, poised, tenacious, and outright brilliant! Watching him litigate is a sight to see!

Speak With an Experienced Fraudulent Transfer of Business Assets Defense Lawyer in Los Angeles

At Werksman Jackson Quinn & Mason LLP, we understand how these types of allegations can threaten your company, your career, your reputation, and your freedom!

Our Los Angeles criminal defense attorneys are prepared to examine the transactions, challenge the government's allegations, and build a defense designed around the facts of your case.

If you are under investigation or facing criminal charges related to an allegedly fraudulent transfer of business assets, call (213) 688-0460 for a free consultation today.

FAQs About Fraudulent Transfer of Business Assets

What is a fraudulent transfer of business assets?

A fraudulent transfer occurs when assets are transferred or disposed of in a manner intended to hinder, delay, or defraud creditors or other parties with a lawful claim to them. Allegations can involve money, real estate, equipment, ownership interests, intellectual property, or other valuable business property.

Does transferring business assets to a family member constitute fraud?

Not automatically. Transfers to relatives and other insiders may receive additional scrutiny, but an insider transaction does not by itself establish fraud. Evidence showing a legitimate business purpose, good faith, appropriate documentation, and fair value may help rebut allegations of fraudulent intent.

Can selling a business asset below market value be considered fraudulent?

A transfer for substantially less than an asset's value can attract scrutiny, particularly when the business is experiencing financial problems. However, market conditions, the asset's condition, liquidity needs, contractual restrictions, and other legitimate factors can affect the price a buyer is willing to pay.

Can a fraudulent transfer lead to criminal charges?

Disputes regarding fraudulent transfer may trigger a criminal investigation. Authorities could investigate whether the transfer was part of conduct involving bankruptcy fraud, wire fraud, mail fraud, money laundering, tax offenses, conspiracy, or another alleged white collar crime.

How can I defend against fraudulent transfer allegations?

Possible defenses may include showing that the transaction was made in good faith, that reasonably equivalent value was exchanged, or that the debtor remained solvent. A defense attorney may also rebut alleged badges of fraud, raise an applicable statute of limitations or safe harbor provision, and challenge whether the government has sufficient evidence.

What are "badges of fraud"?

Badges of fraud are circumstances that may be used as indicators of fraudulent intent. Examples can include transfers to insiders, concealed transactions, inadequate consideration, continued control of transferred property, or transfers occurring during severe financial distress. These factors may raise suspicion, but they do not automatically prove criminal fraud.

Meet Our Fraudulent Transfer of Business Assets Attorneys

Mark Werksman

Mark Werksman is a founding partner of Werksman Jackson Quinn & Mason LLP and has practiced criminal law since 1986. Before becoming a criminal defense attorney, he served as a Deputy District Attorney and as an Assistant United States Attorney. Mark’s defense practice includes serious criminal matters as well as complex white collar and financial crime cases involving extensive records, government investigations, and potentially significant consequences.

Alan Jackson

Alan Jackson is a partner at Werksman Jackson Quinn & Mason LLP and a seasoned criminal trial attorney representing clients in serious and complex cases. Before entering private practice, Alan served as a prosecutor with the Los Angeles County District Attorney’s Office, including as Assistant Head Deputy of the Major Crimes Division. His prosecutorial experience gives him insight into how the government investigates allegations, develops evidence, prepares witnesses, and presents cases at trial.

Kelly Quinn

Kelly Quinn is a partner at Werksman Jackson Quinn & Mason LLP whose practice includes representing clients in criminal matters and handling complex appellate issues. Her work requires careful examination of court records, legal arguments, procedural requirements, motions, and rulings that can affect the outcome of a criminal case. Kelly brings a detail-focused approach to identifying legal issues and developing arguments designed to protect her clients’ rights and interests.

Caleb Mason

Caleb Mason is a partner at Werksman Jackson Quinn & Mason LLP. He represents clients who are facing serious criminal allegations and investigations. Caleb’s work involves cases that may include complicated factual disputes, extensive documentary evidence, government investigations, and substantial consequences for individuals accused of wrongdoing. He approaches criminal defense by carefully examining the allegations, reviewing the evidence authorities intend to use, and identifying factual or legal weaknesses that may affect the prosecution’s case.

Additional Information

• Legal Penalties and Defenses for Fraudulent Asset Transfer