Posted on 01/26/2009 2:22:51 PM PST by Steelfish
January 26, 2009
Ex-Lehman chief sold $13m home to wife for $100 (Susan Walsh/AP)
Christine Seib in New York
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.
Lehman chiefs destroyed $75bn of bank's value in hours Lehman executives served with subpoenas 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.
(Excerpt) Read more at business.timesonline.co.uk ...
she must be one helluva cook
My heart bleeds. Not.
I bet you will see a few Business Socialists applaud this move...the same ones who supported executive over-compensation for so many years....the same ones who love investing in companies that practice executive over-compensation....the same ones whose portfolios are now counted in pennies...
Typically, the IRS would not allow such a transaction.
But, that was before we had a tax cheat in charge of the IRS.
Let me know if one happens along.
Those days are long gone. Now the guy would be revered as the only one that really understands how things work and could save us.
Not the action of an innocent man.
The owner of 84 Lumber sold his daughter Nemicolon Woodlands Golf Course for a $1.
What is she accuses him of “battery”, throws him out and gets a restraining order? Now THAT would be funny. She then takes the $100.00 property, fairly, by giving him back $50 bucks, then lives there herself with her paramour, or sells it and skips away. I can’t help hoping that she’s as ruthless and unprincipled as her husband.
Surprise, surprise...Hillary, Obama, and Chris Dodd on the list.
Imagine what she can do with s whisk.
Musta been an ugly daughter if he could only get $1 for her.
Hey, this woman is quite a bargainer. With her skils, maybe she should have been in charge of Lehmann Bros.
If Dick hadn’t paid his taxes they could both get together and laugh about that one, too.
“You’re not going to go after me for something you yourself did, are ya?” HAHAHAHAHAHHAH /cartmann
No I definatly wouldn’t put here in the ugly category.
Amazing how the financial crisis has effected the price of real estate.
Why not? Isn't there unlimited transfer of property between spouses?
It's different issue is if he's expecting to get his pants sued off, and that is motivating the transfer. Then the issue is "fraudulent conveyance," but that's a court problem, not a tax problem.
I'd have given him $200 cold hard cash for it, and I don't even LIVE in Florida.
Who hated Lehman so much it was sacrificed.
Why the hate?
Lehman was done in
I would have given him $105.00 for it.
Ah...but this is a “Sale” rather than a
‘transfer”, thus a potential tax fraud issue.
The IRS wouldn't care as long as a gift tax was filed and the attendant gift taxes paid. With a major lawsuit against him, however, the transaction could be voided as a fraudulent conveyance. I don't know how Florida law works with respect to property owned jointly with a spouse, but if the house was owned jointly and he merely transferred his interest it might not even be deemed a fraudulent transfer because jointly owned property is only attachable by creditors of both the husband and wife.
Yes, there is. There would be no gift taxes payable. As you said, it could be a voidable fraudulent transfer, but if jointly owned maybe not. You can bet he has excellent legal advice and did it for a reason that he believes will ultimately protect the property.
I will give her $201.
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