Federal Trade Commission v. Mar Delfinas, Ltd.

MEMORANDUM ***

Mar Delfinas, Ltd. appeals the district court’s grant of summary judgment in favor of the Federal Trade Commission (FTC). The district court held that the transfer of property from Eugene Evangelist to Mar Delfinas was fraudulent pursuant to 28 U.S.C. §§ 3304 (b)(1)(A) and (b)(l)(B)(ii). The court ordered that proceeds earned when Mar Delfinas later resold the property must be turned over to the FTC to satisfy a portion of a $1,566,000 judgment owed by Mr. Evangelist.

Mar Delfinas argues that summary judgment was inappropriate because Mr. Evangelist held no interest in the property he transferred to Mar Delfinas and was instead merely holding the property for his sister, Joyce. The record evidence contradicts Mar Delfinas’s contentions. Mr. Evangelist took exclusive legal title to the property when he purchased it. He provided at least a portion of the down payment for the property, as demonstrated by the escrow document in which he forwarded a $5,000 cashier’s check to the escrow company. The mortgage to purchase the property was taken out by Mr. Evangelist only. When he transferred the property to Mar Delfinas, Mr. Evangelist transferred an exclusive legal…