Max Factor heir files for bankruptcy

Birmingham News ^ | 1/9/2004 | Associated Press

[Holly_P]

VENTURA, Calif. (AP) -- The Max Factor cosmetics heir who was convicted of raping three women filed for bankruptcy protection after he was ordered to pay nearly $40 million to two victims.

Property records show that Andrew Luster, the 40-year-old great-grandson of cosmetics legend Max Factor, sold his beach house near Santa Barbara for $1,000 several days after he was caught in Mexico.

"That doesn't look like a sale to me," attorney Barry Novack, who won a $19 million verdict for one of the women, told the Los Angeles Times for its Friday's editions. Novack said it appeared Luster was trying to get rid of assets to avoid paying damages.

Luster is serving a 124-year state prison sentence in Soledad. The self-employed real estate investor filed for bankruptcy protection last month, stating in court documents that he had no assets.

He was convicted earlier this year of raping three women at his home by knocking them out with the drug GHB. He fled to Mexico during his Ventura County trial and was caught by a bounty hunter five months later.

Attorney Harold Greenberg, who represents Luster, said the women awarded damages would have to wait in line with other creditors.

[Vesuvian]

I'm pretty sure that disposing of assets to evade paying a judgement is illegal in California. I hope the victims' lawyers go after him for every cent he has. I wonder who "bought" the house?

[sarasota]

What kind of man would sell off assets to avoid paying damages?

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[goldstategop]

The Max Factor is the Deadbeat Detractor.

[goldstategop]

A psychopath who wants to plead poverty.

[Reeses]

124 years of jail and ordered to pay $40 million? What would be his penalty for murder?

[Reeses]

I wonder who "bought" the house?

Probably his lawyer.

[Vesuvian]

They're not usually that obvious- look for the lawyer's wife or business associate. ; )

[pabianice]

124 years of jail and ordered to pay $40 million? What would be his penalty for murder?

In Massachusetts, released for time served, ordered to pay $ 5,000, and ordered to attend female issues sensitivity classes. Next case! *Bang*

[ken5050]

It's called "fradulent conveyance", and the bankruptcy judge has the right to rescind the sale, and bring the assets back into the estate..

[lady lawyer]

Beat me to it. It doesn't matter whether it was sold to someone entirely unrelated, where fair value wasn't received.

[ken5050]

OTOh, it could turn out that the house is worth, say 1 mill, and encumbered with a $995,000 mortgage..I'm not a lawyer, just have some general knowledge of the process, but that's a technique that's used occasionally, and it is harder to reverse...what will be interesting in tis case is that if, as is reported, he's the beneficiary of several trusts, then can the trusts themselves be attacked?...

[sarasota]

I wondered the same thing. Is it related to fleeing the country and going into hiding?

[Liz]

In Massachusetts, (penalty is) released for time served, ordered to pay $5,000, and ordered to attend female issues sensitivity classes. Next case! *Bang*

That's called buying justice. The judge obviously had his price for "justice" and the defendant paid it.