Developer Jacob Frydman is no stranger to the court system after having been involved in a number of lawsuits as well in the past. Well, it seems as though Frydman’s actions have caught up with him again as a New York State supreme court judge has ruled against him. A company named 8430985 Canada Inc. has been awarded a judgment of $2,603,927.77 from Frydman.
No Stranger to the Court System
Those familiar with Frydman are well aware that he’s no stranger to the court system. In fact, he has been involved in more than 150 lawsuits, to date. In this most recent lawsuit, 8430985 Canada Inc. alleged that Frydman went ahead and acted as a personal guarantor and signed a note for the company, United Realty Advisors L.P., which just so happened to be a company that Frydman has earlier sold to First Capital Advisors.
The allegations went on to state that Frydman was, in fact, a businessman whose main goal was to put together various schemes that would end up defrauding his creditors. Frydman has operated a number of private and public companies and the suit went on to state that a company by the name of JFURTI was given the funds to pay off the United Realty Advisors LP loan, but this company (JFURTI) is also controlled by Frydman himself.
The Judge’s Reason for the Ruling
The judge was anything but understanding of Frydman’s position as he stated that “the lack of good faith on Frydman’s part, as a transferor, affords a sufficient basis to set aside this transfer as constructively fraudulent.” The judge went on to explain that it was apparent that the money given to JFURTI was just one of many transactions that were meant to protect his assets.
According to Hon. Judge Arthur F. Engoron, “the record reflects that respondents fraudulently conveyed FCA’s funds when, instead of using any portion of the $2,500,000 to repay the judgment against FCA, Frydman pocketed the funds.” This was done through a variety of transfers through his numerous affiliated companies which are wholly-owned by him.
Frydman’s defense stated that he didn’t have whole ownership and that instead, it was owned by his wife’s trust as well as other entities.
The judge didn’t end his ruling there as he went on to state that Frydman’s tax returns from 2012 to 2014 show without a doubt that he, in fact, received the trust payments. What this meant is that he has access to the funds which means he should be able to pay the judgment, at least partially.
For his lawsuit, Frydman decided to represent himself. Frydman also put together a motion to reargue the case. The company, 8430985 Canada Inc., used Andrew J. Ryan of The Ryan Law Group to represent them. In rearguing the case, Frydman aims to open a new line of reasoning based on a law or fact that was misapprehended or overlooked by the court.
It just seems as though Frydman’s run-ins with the law and lawsuits have continued with a rather large judgment ruled against him.