Legal Blog

Fraudulent Conveyance

Bank of Montreal v. Bibi 2020 Ont SCJ

Debtor transferred her residence to her mother while owing money to a financial institution. Debtor and mother had concocted, upon the transfer of the land, documentation to show that mother was actually paying for the land because she was cancelling a debt owed on another transaction. There was a complete lack of documentation regarding the debt and the other transaction and the judge simply did not believe mother and daughter. The judge concluded that mother knew exactly what daughter was doing and, after reviewing the badges of fraud, concluded that there had been a fraudulent conveyance and a fraudulent preference.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.