Nailing the Lawyer For His Debtor-Client's SinsNailing the Lawyer For His Debtor-Client's Sins
So what exactly are fraud, fraudulent conveyance, deceit and fraudulent transfer and when are attorneys accountable? Being a trustee entails risk of personal liability. Being one of a number of trustees can increase the risk. In the legendary Matter of Rothko,1 a fiduciary that failed to try to prevent his co-fiduciaries from breaching their duties was surcharged $6 million. This cautionary tale sends
Denis A. Kleinfeld, principal, and Salvador C. Orofino, associate, The Kleinfeld Law Firm, Miami
So what exactly are fraud, fraudulent conveyance, deceit and fraudulent transfer — and when are attorneys accountable?
Being a trustee entails risk of personal liability. Being one of a number of trustees can increase the risk. In the legendary Matter of Rothko,1 a fiduciary that failed to try to prevent his co-fiduciaries from breaching their duties was surcharged $6 million.
This cautionary tale sends a clear message: Know the state law that governs when a group or pair of fiduciaries disagree or even deadlock.
JOINT OR SEVERAL POWERS
These are much-debated issues in the legal community: What are the ethical responsibilities and legal liabilitie...
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Feb 12, 2025
