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There is a divergence of opinion under Florida law as to
whether a creditor must prove that a conveyance was fraudulent by
a preponderance of the evidence or by clear and convincing
evidence. See Wieczoreck v. H&H Builders, Inc., 450 So. 2d 867,
872 (Fla. Dist. Ct. App. 1984). However, that issue does not
affect our decision because we find that respondent has proven by
clear and convincing evidence that the conveyance of assets from
House of Babes to petitioners was fraudulent.
1. Intent of the Transferor
Fraudulent intent may be established if a sufficient number
of badges of fraud are present. Advest, Inc. v. Rader, supra at
854; Johnson v. Dowell, 592 So. 2d 1194, 1197 (Fla. Dist. Ct.
App. 1992); Wieczoreck v. H&H Builders, Inc., supra at 873;
Banner Constr. Corp. v. Arnold, 128 So. 2d 893, 896 (Fla. Dist.
Ct. App. 1961). Badges of fraud under Florida law include: (a)
The transfer of all of the debtor's assets; (b) the existence of
a close relationship between the transferor and transferee; (c)
lack of consideration for the transfer; (d) the transfer of
assets with knowledge of pending liability; and (e) the
insolvency or substantial indebtedness of the transferor. Eyler
v. Commissioner, 760 F.2d 1129 (11th Cir. 1985), affg. in part
and revg. in part T.C. Memo. 1983-397; United States v. Fernon,
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