"In return, all litigation will be dismissed with prejudice. BBX had also filed suits against Catalfumo in the Cayman Islands, the Island of Jersey and South Carolina, according to the motion.
The original dispute was over two loans, totaling $36.5 million, issued to PGA Flyover Corporate Park by BankAtlantic in 2005 and 2006 and guaranteed by Catalfumo, according to court documents. BBX inherited the loans as a successor to BankAtlantic.
Three days before one of the loans was set to mature, Catalfumo established an offshore trust and transferred $25 million there, BBX claimed. Over the next year, while litigation over the unpaid loans was proceeding in Florida state court, he transferred additional funds for a total of $64 million, according to BBX.
BBX learned of the offshore trusts after winning a $40.9 million judgment against Catalfumo in September 2011, it said.
The lender asserted fraudulent transfer claims against Catalfumo in November 2012 in the state court case and got a temporary injunction prohibiting him from transferring funds out of the offshore trusts, it said.
Catalfumo's Chapter 11 petition was filed the day before several of his employees, counsel and financial advisers were scheduled to be deposed in one of BBX's suits, according to a motion BBX filed April 24 asking the court to dismiss the bankruptcy case. It said the Chapter 11 filing was clearly meant to thwart its attempts to collect on the state court judgment, which had grown by then to $45 million with the addition of costs and interest."
C In re for in return for dismissal of litigationdid the court arrange for the transfer to be made of these offshore moneyto pay off the judgmentif not I think you would be guilty of fraud and prosecuted criminally any tidbits appreciatedG