Fraudulent Conveyance – NRS 205.330

Overview

Fraudulent conveyance is a serious offense under Nevada Revised Statute (NRS) 205.330. This law addresses the intentional transfer of property or assets to avoid creditors or legal obligations. Understanding the implications of this statute is crucial for individuals, business owners, and legal professionals involved in financial transactions and bankruptcy cases.

Definition of Fraudulent Conveyance

Under NRS 205.330, “fraudulent conveyance” refers to the act of transferring property or assets with the intent to defraud, hinder, or delay a creditor or other party seeking to enforce a legal right. Key components of the law include:

1. Intent to Defraud: The individual must have acted with the intent to deceive creditors or evade legal responsibilities when transferring the property.
2. Transfer of Property: The statute applies to any transfer of property or assets, which can include real estate, personal property, or financial assets.
3. Knowledge of Creditor Claims: The conveyance must occur when the transferor is aware of existing or impending creditor claims against them.

Legal Requirements for Prosecution

To secure a conviction for fraudulent conveyance under NRS 205.330, the prosecution must prove several elements beyond a reasonable doubt:

1. Existence of a Transfer: The prosecution must establish that a transfer of property or assets occurred.
2. Intent to Defraud: It must be shown that the accused intended to defraud creditors or evade legal obligations through the transfer.
3. Creditor Claims: The prosecution must demonstrate that the individual was aware of creditor claims at the time of the transfer.

Related Offenses

Fraudulent conveyance is related to several other offenses, including:

• Fraud – NRS 205.380: A broader category encompassing various fraudulent activities, including fraudulent conveyance.
• Conspiracy to Commit Fraud – NRS 199.480: Involves planning or agreeing to engage in fraudulent conduct, which can include fraudulent conveyance schemes.
• Bankruptcy Fraud – NRS 205.450: Involves dishonest practices during bankruptcy proceedings, which may include fraudulent asset transfers.

Examples of Fraudulent Conveyance Offenses

To illustrate how NRS 205.330 is applied, consider these examples:

• Example 1: An individual facing significant debt transfers their home to a family member for a nominal fee, knowing that creditors are seeking to collect. This act can lead to charges of fraudulent conveyance.
• Example 2: A business owner sells off valuable assets just before filing for bankruptcy to avoid liquidation by creditors. This behavior constitutes fraudulent conveyance under the law.

Penalties for Fraudulent Conveyance

The penalties for committing fraudulent conveyance under NRS 205.330 can be severe:

• Category C Felony: Fraudulent conveyance is typically charged as a Category C felony, which carries:
  • Imprisonment: 1 to 5 years in the Nevada Department of Corrections.
  • Fines: Up to $10,000.
• Restitution: Individuals convicted of this offense may also be required to pay restitution to affected creditors for any financial losses incurred.

Defenses Against Fraudulent Conveyance Charges

If you are facing charges for fraudulent conveyance under NRS 205.330, several defenses may apply:

1. Lack of Intent: Demonstrating that there was no intent to defraud can be a strong defense. If the accused can show that the transfer was made for legitimate reasons, this may mitigate liability.
2. Valid Transaction: If the transfer was part of a bona fide sale or transaction that was not designed to evade creditors, this can serve as a defense.
3. Insufficient Evidence: If the prosecution cannot provide adequate evidence to prove that the accused knowingly engaged in fraudulent conveyance, the charges may be dismissed.
4. Mistaken Beliefs: If the individual believed that their debts were being paid or resolved, this may negate the intent to defraud.

The Importance of Legal Representation

Navigating the complexities of fraudulent conveyance charges requires knowledgeable legal representation. Josh Tomsheck is a board-certified criminal trial attorney and registered specialist in criminal trial law with the State Bar of Nevada. His extensive experience in handling fraud cases equips him to provide a robust defense against charges under NRS 205.330.

As a Life Member of the National Association of Criminal Defense Lawyers and a Mountain State’s Super Lawyer, Josh has a proven record of achieving favorable outcomes, including numerous complete dismissals and acquittals at trial. His commitment to protecting the rights of clients and understanding the intricacies of Nevada’s legal landscape make him a strong advocate in cases involving fraudulent conveyance.

Understanding Your Rights

If you are accused of fraudulent conveyance, understanding your rights is crucial. Having experienced legal representation can help ensure that you navigate the legal process effectively and protect your interests.

For more information about defending against charges under NRS 205.330 in Las Vegas, contact the law firm of Hofland & Tomsheck to schedule a free consultation. Call (702) 895-6760 today to discuss your case and explore your legal options.