528 F. App'x 75
2d Cir.2013Background
- Jacob Evseroff, a licensed attorney proceeding pro se, transferred $220,000 in cash and a Dover Street residence into a trust he created in 1992.
- The United States sought to collect Evseroff’s unpaid federal tax liabilities by levying a lien and collecting against assets held in the Trust.
- The district court found Evseroff’s transfers to the Trust were actually fraudulent under New York Debtor & Creditor Law § 276 and authorized collection against Trust assets; Evseroff appealed.
- The Government challenged Evseroff’s standing to prosecute the appeal pro se because no trustee or Trust representative participated.
- The Second Circuit considered (1) whether Evseroff had appellate standing to challenge the judgment and (2) whether the district court correctly found the transfers actually fraudulent by clear and convincing evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to appeal pro se | Government: Evseroff lacks standing to appeal Trust collection without a Trust representative | Evseroff: District judgment threatens seizure of Dover Street home, depriving him of residence | Evseroff has Article III standing to appeal because the judgment increases risk of losing his residence; appeal permitted |
| Whether transfers were actually fraudulent under NY D&C Law § 276 | Government: Transfers made with actual intent to hinder, delay, or defraud creditors; clear and convincing evidence from surrounding circumstances | Evseroff: Challenges district-court factual inferences (e.g., intent, lack of consideration, belief Florida residence exempt) and urges a stricter standard | The Court affirmed: district court’s factual findings support inference of actual fraudulent intent by clear and convincing evidence; alternative nominee/alter-ego grounds not reached |
Key Cases Cited
- Drye v. United States, 528 U.S. 49 (Sup. Ct.) (IRS may impose lien on taxpayer property or rights to property)
- G.M. Leasing Corp. v. United States, 429 U.S. 338 (Sup. Ct.) (assets of nominee/alter ego subject to tax lien)
- McCombs v. United States, 30 F.3d 310 (2d Cir.) (applicability of fraudulent conveyance law to tax liens; standard for proving actual intent)
- HBE Leasing Corp. v. Frank, 48 F.3d 623 (2d Cir.) (actual fraudulent intent may be inferred from surrounding circumstances)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (Sup. Ct.) (Article III standing requirements)
- Baur v. Veneman, 352 F.3d 625 (2d Cir.) (threatened future injury can satisfy injury-in-fact for standing)
- Official Comm. of Unsecured Creditors of WorldCom, Inc. v. SEC, 467 F.3d 73 (2d Cir.) (standing as component of appellate jurisdiction)
- Elk Grove Unified School Dist. v. Newdow, 542 U.S. 1 (Sup. Ct.) (prudential standing: prohibition on litigating third-party rights)
- United States v. Coppola, 85 F.3d 1015 (2d Cir.) (standard of review: factual findings for clear error)