Cases Defeating Offshore Trusts

Photo of federal courthouse in Galveston, Texas. Cases Defeating Offshore Trusts.

The following is a list of over 2 dozen court cases defeating offshore trusts. There are no cases to the contrary.

Bankruptcy Court Cases Defeating Offshore Trusts:

In re Colburn 145 B.R. 851 (Bkrpt E.D. Va. 1992). (For failing to disclose offshore trust, debtor was denied a discharge and accused of fraud).

Brown v. Higashi, (Bkrpt Ak. 1995). (Assets of offshore trust included in bankruptcy estate. The court stated that “[t]he fact that the trusts were established in Belize, a country notorious for its anti-creditor policies…indicates an intent to hinder, delay or defraud on the part of the defendants”).

In re Portnoy, 201 B.R. 685 (S.D.N.Y. Bkrpt 1996) (Because of offshore money, discharge denied and debtor accused of fraud).

In re Brooks, 217 B.R. 98 (D.Conn. Bkrpt. 1998) (Offshore trust disregarded and assets seized by US court).

Advanced Telecommunication Network, Inc. v. Allen, D.C. Docket No. 05-00770-CV-ORL-19-JA-DA (11th Cir. 2011) (Debtor funded Cook Islands trust which included duress clause and all the usual provisions; bankruptcy court found offshore trust against public policy and ordered debtor to repatriate funds; debtor claimed he had no power to comply; debtor was held in contempt and the court cited earlier cases holding that a self-created impossibility is not a defense; 11th circuit affirmed.)

U.S. Federal Government Actions Against Offshore Trusts:

FTC v. Fortuna Alliance (1997) (FTC investigated a pyramid scheme and in doing so was able to get a U.S. District Court to issue arrest warrants to Debtors, who then repatriated millions from offshore accounts in Antigua. This case is often ignored by offshore trust promoters because it was settled out of court).

SEC v. Brennan, 230 F. 3d 65 (2nd Cir. 2000) (Debtor convicted of bankruptcy fraud).

FTC v. Direct Benefits Group, LLC, 2011 WL 3654469 (M.D.Fla., Slip Copy, Aug. 19, 2011).(Court ordered all offshore funds repatriated without regard to any documents or legal structures).

Offshore Trusts Defeated in Divorce:

ABOUT THE AUTHOR

Founding attorney Paul Deloughery has been an attorney since 1998, became a Certified Family Wealth Advisor. He is also the founder of Sudden Wealth Protection Law.

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