Posted on 01/26/2009 11:45:17 AM PST by BGHater
Richard Fuld, the disgraced former chief executive of Lehman Brothers, sold his $13.3 million (£9.6 million) Florida mansion to his wife in November for $100, according to real estate records.
Mr Fuld, who is widely blamed for the collapse of Lehman Brothers in September last year, bought the house with his wife, Kathleen, in March 2004 for $13.75 million.
On November 10, the 62-year-old banker transferred the seaside mansion into Mrs Fuld's name in return for $100.
Mr Fuld is expected to face civil lawsuits from shareholders furious that he allowed Lehman to fall into bankruptcy rather than be sold months earlier.
Lawyers speculated today that moving the house into Mrs Fuld's name only - it had previously been held in the couple's names - could be an attempt to put assets beyond the reach of Lehman Brothers investors who intend to sue the former chief executive.
Florida has unusually generous home protection laws that could save the Fulds from losing their home in the case of a lawsuit or bankruptcy. But the couple would have to provide evidence that they resided in Florida, which would be difficult, lawyers said, because of the amount of time they spend in New York.
Also, if a court decided that Mrs Fuld did not pay enough for the mansion, the transfer be deemed to be "fraudulent conveyance" that would render the move void.
The Fulds also own a multimillion-dollar property in the hedge-fund belt of Greenwich, Connecticut, and are enthusiastic art collectors.
The collapse of Lehman Brothers was the largest corporate bankruptcy in American history.
Mr Fuld was paid $22 million in 2007 but did not receive any bonus or severance payment when he left Lehman last year.
The former chief executive was questioned by a congressional committee in October.
(Excerpt) Read more at business.timesonline.co.uk ...
Ya think?
I thought residential property in Florida was protected from lawsuits. Didn’t OJ use that dodge to avoid paying the Goldmans?
I’ll give her $200 for it. 100% profit.
“Ex-Lehman chief sold $13m home to wife for $100”
Gee, why not $50?
Not a lawyer here, but it is my understanding that homesteads in Fla. are protected from bankruptcy so long as the individual had established residence there for some period of time. Four years sticks in my mind.
Florida’s homestead law.
Compliment. Nice carbon footprint.
Florida law exempts ones homesteaded primary residence from exposure to lawsuits and bankruptcy. In order to claim homestead one must be a “domiciled” Florida resident. A Florida resident is not prevented from visiting other states but dual residents such as our snowbirds are not entitled to homestead their property.
How could you not have anything but disdain and contempt for such a rotten person?
As it is, he is as innocent as Madoff.
Just to prove that it was a reasonable amount, I am prepared to DOUBLE the price to $200.
Sometimes I wish we lived in the old west....these guys would be taken out and shot. And that would serve as an example for everyone else.
Incredibly stupid move..because there is no way it can hold up..
This would be an ideal time for IRS to look into this but, zero’s already handpicked a tax cheat to run the IRS.
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