Fadel v. El-Togby

When a party transfers property from an estate to an estranged spouse in the midst of a divorce proceeding to avoid paying creditors, whether or not the divorce is a sham is inconsequential; and such property transfers are fraudulent if the transferor had any intent to defraud any creditor by avoiding an obligation to pay.

Plaintiff El-Togby, acting on behalf of the estate of Claryce El-Togby, brought suit on grounds of financial elder abuse against defendants Sami El-Togby and his ex-wife Mona El-Togby by allegedly taking money and property from Claryce and defrauding creditors through illegal asset transfers from Claryce's estate. The jury held the defendants guilty and awarded judgment in the form of damages to plaintiff and voiding the illicit transfers. On appeal, Mona El-Togby argued that there was no actual intent to defraud Claryce when her ex-husband transferred the funds since such a transfer can only be fraudulent if the divorce is a sham, which this was not. The Court of Appeals held that whether or not the divorce was a sham is inconsequential, and property transfers are fraudulent if the transferor had any intent to defraud any creditor by avoiding an obligation to pay. Affirmed.