Commercial Division Blog
Posted: October 4, 2015 / Categories Commercial, Fraudulent Conveyance
Receipt of Salary from Transferee Insufficient to Render Defendant a Transferee
On October 1, 2015, the First Department issued a decision in Cantor Fitzgerald & Co. v. 8an Capital Partners Master Fund, L.P., 2015 NY Slip Op. 07046, holding that a corporate officer could not be deemed a recipient or beneficiary of a fraudulent transfer merely because he received a salary from the corporate transferee.
In Cantor Fitzgerald, the plaintiff alleged "that defendant knew of and participated in the alleged fraudulent transfer of assets "but did not allege that we was himself a transferee or beneficiary of the transfer. The First Department rejected the plaintiff's argument that because the "defendant is an officer of both defendant transferor and transferee corporations," he should be deemed to be a transferee, explaining: "receipt of a salary from the transferee corporation as an officer of the corporation is not sufficient to render the officer a transferee or beneficiary of the transfer."