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The Claims of Fraudulent Conveyance against Mark & Elyse Kovler
One of the most instructive cases demonstrating how attorneys react when sued and how they misuse the judicial system to protect themselves is the case we prosecuted against Mark and Elyse Kovler. They are husband and wife. They met in law school. Mr. Kovler's law firm was located in the basement of his home. When he made his fatal mistakes his wife was working with him on selected cases while at the same time, raising two children. Their law firm was uninsured. As a "team" the Kovlers successfully used the judicial system to "kill" the malpractice claims against them.
Here is how it happened. First, the Kovlers refused to attend their depositions or provide the documents in their case files. When their sworn testimony was ordered by the Court, Mr. Kovler made a not-so-vague threat to shoot my wife and partner. Mr. Kovler stated he had actually taken steps to kill his former client because she was suing him. When these threats-followed by Mr. Kovler's physical violence at his deposition-did not deter our firm, the Kovlers filed for bankruptcy.
We eventually sued the Kovlers in fraudulent conveyance and proved-by clear and convincing evidence-that Mr. and Mrs. Kovler had faked a marital separation to explain why they had transferred their marital home, their single largest asset, from his name to hers alone. While the malpractice claims were discharged by the bankruptcy courts, the fraudulent conveyance was not.
The bankruptcy court held two separate trials and wrote two separate decisions. The first focused solely on whether the conveyance of the marital home was fraudulent. On January 14, 2000 the court found the conveyance to have been fraudulent. (Click here to read that decision). The second trial focused on the damages provided by the New York fraudulent conveyance statute, namely the attorneys fees to be paid by the Kovlers to our firm for reversing the conveyance. (Click here to read that decision).
The Honorable Adlai S. Hardin, Jr. referred the Kovlers to the local grievance committee for an investigation. Two years later Mr. Kovler resigned in the face of certain disbarrment. (Click here to read the disbarrment decision and the prohibitions placed on Mr. Kovler's practice of law.)
Mrs. Kovler, who was not disbarred, has changed her name as an attorney and can be reached through the home office of Mark Kovler. The voice answering her phone, at the end of 2002, (which is the same number as the old law office of Mark Kovler), is that of her husband, who states the caller has reached the office of "Mark Kovler."
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