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the conveyances to David constitute fraudulent conveyances. In
this regard, Nebraska law provides:
36-607. Conveyances made with
intent to defraud. Every conveyance
made and every obligation incurred
with actual intent, as distinguished
from intent presumed in law, to
hinder, delay, or defraud either
present or future creditors, is
fraudulent as to both present and
future creditors.
Neb. Rev. Stat. sec. 36-607 (reissue 1988).
To prove a conveyance of property constitutes a fraudulent
conveyance under Neb. Rev. Stat. sec. 36-607, the Commissioner must
prove with clear and convincing evidence that there was an intent
on David’s part to hinder, delay, or defraud the IRS. See
Castellano v. Bitkower, 346 N.W.2d 249, 253 (Neb. 1984). As
discussed infra, we believe the Commissioner has satisfied this
clear and convincing standard.
Nebraska law recognizes the following as badges of fraud: The
transfer was for less than fair consideration; the transfer was of
the transferor's entire estate; the transfer was made to the
transferor's spouse or other family member; the transfer was made
while there was pending or threatened litigation against the
transferor; the transfer was made secretly or hurriedly; the
transfer was made while the transferor was insolvent or greatly in
debt; the transfer was a departure from the transferor's usual
method of doing business, and the transferor retained possession of
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