FILED NEW YORK COUNTY CLERK 05/20/2016 0415 PM INDEX NO. 652739/2016 NYSCEF DOC. NO. 2 RECEIVED NYSCEF 05/20/2016 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x CAPITAL ONE EQUIPMENT FINANCE CORP., - against - Plaintiff, SILKE TSITIRIDIS AND FIDELITY CORP LIMITED, IN THEIR CAPACITIES AS TRUSTEES OF THE BRIDGE FUNDING TRUST, SAVAS TSITIRIDIS, AND 1617A LLC, Defendants. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x Index No. COMPLAINT Plaintiff Capital One Equipment Finance Corp. ( Plaintiff or Capital One ), by and through its undersigned counsel, for its Complaint against Silke Tsitiridis and Fidelity Corp Limited, as Trustees of The Bridge Funding Trust ( Trustees ), Savas Tsitiridis and 1617A LLC (collectively Defendants ) alleges, upon personal knowledge as to itself and its own acts and upon information and belief as to all other matters, as follows NATURE OF ACTION 1. This is an action pursuant to the New York Debtor and Creditor Law to set aside Savas Tsitiridis s fraudulent conveyances to his wife Silke Tsitiridis and Fidelity Corp Limited as Trustees of The Bridge Funding Trust, which were made to evade Capital One s ability to collect on personal guarantees made by Mr. Tsitiridis and which rendered him insolvent. 2. Mr. Tsitiridis and a business partner, Evgeny Freidman, own and operate taxi medallions and vehicles in several cities including New York City through various entities they own. During 2012 to 2014, Capital One loaned money to many of these entities, which were personally guaranteed by Mr. Tsitiridis and Mr. Freidman. 1 of 17
3. Specifically, Mr. Tsitiridis executed guarantees for loans made by Capital One to 26 entities in the taxi business ( Borrowers ), 1 which were owned by Mr. Tsitiridis and/or Mr. Freidman, in favor of Capital One under which Mr. Tsitiridis absolutely and unconditionally guaranteed the payment obligations of these 26 entities to Capital One. Borrowers loans were memorialized by promissory notes ( Notes ) obligating them to repay the loans pursuant to certain conditions. 4. Borrowers defaulted under the terms of the Notes on or around August 8, 2014, triggering Mr. Tsitiridis s and Mr. Freidman s obligations to Capital One under the guarantees. Pursuant to the guarantees, Mr. Tsitiridis owed Capital One $515,973.44, plus accrued interest and late fees. 5. Mr. Tsitiridis still owes that amount to Capital One. 6. Additionally, Mr. Tsitiridis executed absolute, irrevocable and unconditional guarantees for loans made by Capital One to Kolara Trans LLC ( Kolara ) and Kickstand Trans LLC ( Kickstand ) two of Mr. Tsitiridis s entities that own taxi medallions. Kolara and Kickstands loans were memorialized by promissory notes ( Kolara and Kickstand Notes ) obligating them to repay the loans pursuant to certain conditions. 7. Under the terms of the Kolara and Kickstand Notes, the outstanding principal, interest and fees became due on July 23, 2015. Kolara and Kickstand have since failed to repay the outstanding amounts, triggering Mr. Tsitiridis s obligations to Capital One under the 1 The Borrowers are collectively Athens Taxi LLC; Birkin Cab Corp.; Broome Taxi LLC; Flatiron Taxi LLC; Greenvale Taxi LLC; Hunter Green Taxi Inc; Illinois Taxi LLC; Larissa Taxi LLC; Locust Taxi LLC; Malaga Taxi LLC; McCab, IX Corp.; Onz Taxi, LLC; Papa Bear Taxi, LLC; Perry Taxi LLC; Peyton Taxi Inc.; Pine Taxi LLC; Rhodes Taxi LLC; Santorini Five Cab Corp.; Santorini Four Cab Corp.; Santorini Six Cab Corp.; Santorini Two Cab Corp.; Spruce, Taxi, LLC; Tripoli Taxi LLC; University Taxi LLC; Wolf Pack Taxi LLC and Zaharia Taxi LLC. 2 2 of 17
guarantees. Pursuant to the guarantees, Mr. Tsitiridis owes Capital One $985,188.14, exclusive of accrued interest and fees. 8. By the summer of 2015, keenly aware that Capital One would seek to enforce these guarantees, Mr. Tsitiridis unlawfully transferred his interests in two real estate properties his personal residence and a commercial space in Queens, New York co-owned with Mr. Freidman to Silke Tsitiridis and Fidelity Corp Limited, as trustees of The Bridge Funding Trust, out of the reach of his creditors, in an attempt to avoid making good on his guarantees. Mr. Tsitiridis made these transfers for little or no consideration. 9. This Court should exercise its equitable powers and its statutory authority under Sections 278, of the New York Debtor and Creditor Law to invalidate the transfers made by Mr. Tsitiridis. PARTIES 10. Plaintiff Capital One Equipment Finance Corp., formerly known as All Points Capital Corp. d/b/a Capital One Taxi Medallion Finance, is a New York corporation with a principal place of business in Melville, New York. 11. Defendant 1617A LLC is a New York limited liability company, having an address at 43-10 39th Street, Long Island City, New York 11104. 12. Defendant Savas Tsitiridis is an adult resident of New York, New York. 13. Defendant Silke Tsitiridis is an adult resident of New York, New York. She is a Trustee of The Bridge Funding Trust. She is married to Savas Tsitiridis. 14. Defendant Fidelity Corp Limited is a Trustee of The Bridge Funding Trust. 15. The Bridge Funding Trust has an address at 43-10 39th Street, Long Island City, New York 11104. The Bridge Funding Trust owns a hundred (100%) percent interest in 1617A 3 3 of 17
LLC, a New York limited liability company and a fifty (50%) percent interest in 43-05 Vernon Boulevard, LLC, a New York limited liability company. JURISDICTION AND VENUE 16. This Court has jurisdiction over this matter under C.P.L.R. 301 and 302 because Defendants are present in and transact business within the State of New York and because Defendants committed tortious acts within the State out of which the causes of action arise. 17. Venue is proper in this Court pursuant to C.P.L.R. 503(a). FACTUAL ALLEGATIONS THE PROMISSORY NOTES AND DEFAULT 18. From 2012 through 2014, Capital One and Borrowers executed Notes, pursuant to which Borrowers promised to pay to the order of Capital One the principal of the Notes, plus interest thereon from the date of each Notes execution. In total, the principal amount of the Notes was $765,161.20. The Notes provide that following an Event of Default (as defined in the Notes), Capital One may declare the entire unpaid balance of a Note due and payable. 19. By August 8, 2014, Borrowers defaulted on each of the Notes for, among other things, (i) failure to make timely payments to Capital One as required by the Notes; (ii) failure to provide satisfactory annual financial statements; and (iii) a material adverse change in financial condition. At that time, Borrowers owed a total of $564,051.28 in principal balance. 20. The Notes provide further that Borrowers shall pay Capital One a late fee of 4% of the amount of any payment which is not made within 10 days of when due. 21. Since the defaults, Borrowers have made certain partial payments on the Notes, but have failed to pay the complete outstanding principal, interest and late fees. They currently 4 4 of 17
owe $515,973.44, exclusive of accrued interested and fees. 22. Similarly, under the Kolara and Kickstand Notes, executed on July 23, 2012, Kolara and Kickstand promised to pay to the order of Capital One the principal sum of the Kolara and Kickstand Notes, plus interest thereon from August 23, 2012 through July 23, 2015 (the Kolara and Kickstand Maturity Date ), when the unpaid principal amount plus interest and other note related charges would become due in full. 23. On July 23, 2015 Kolara and Kickstand s loans matured and the full amount under the Kolara and Kickstand Notes became due and owing to Capital One, including outstanding principal, interest and fees. 24. Since the Kolara and Kickstand Maturity Date, Mr. Tsitiridis has made certain partial payments on the loans to Kolara and Kickstand, but has failed to pay the complete outstanding principal, interest and fees. Kolara and Kickstand currently owe $985,188.14, exclusive of accrued interest and fees. GUARANTEES The Notes 25. Mr. Tsitiridis executed absolute and unconditional written guarantees of the Notes in which he guaranteed the prompt payment and performance of all present and future obligations, liabilities and indebtedness of each Borrower to Capital One. Mr. Freidman his business partner entered into the same guarantees. 26. When Borrowers obligations to Capital One became due and payable upon their defaults, under the terms of the guarantees, Mr. Tsitiridis s obligations to pay the remaining amounts owed by Borrowers became immediately due. Therefore, under the guarantees, Mr. Tsitiridis owes Capital One the unpaid principal on the Notes in the amount of $515,973.44, plus 5 5 of 17
accrued interest and late fees. Since he has failed to pay this amount, he remains in default of his obligations. In addition, neither Borrowers nor Mr. Freidman have satisfied their obligations to pay the debts, and also remain in default. The Kolara and Kickstand Notes 27. Similarly, Mr. Tsitiridis executed absolute, irrevocable and unconditional written guarantees of Kolara and Kickstand Notes in which he guaranteed all liabilities and obligations... whether matured or unmatured of each Kolara and Kickstand to Capital One. 28. When the Kolara and Kickstand Notes matured, under the terms of the guarantees, Mr. Tsitiridis became obligated to pay the outstanding principal, interest and fees. Therefore, under the guarantees, Mr. Tsitiridis owes Capital One the unpaid principal for the Kolara and Kickstand Notes in the amount of $985,188.14, plus accrued interest and fees. Since he has failed to pay this amount, he remains liable for this amount. In addition, neither Kolara nor Kickstand have satisfied their obligations to pay the debts, and also remain liable. MR. FREIDMAN S CONTINUED FINANCIAL TROUBLE 29. By spring 2015 Mr. Freidman the co-guarantor of the debts due under the Notes was in deep financial distress. 30. Both Capital One and Citibank, N.A. ( Citibank ) sought legal recourse against Mr. Freidman as his companies missed payments on loans extended by Capital One and Citibank and plunged further into default. 31. On March 5, 2015 Citibank filed an action in New York Supreme Court, New York County seeking a judgment against Mr. Freidman as guarantor of loans totaling approximately $31.5 million extended by Citibank to entities closely held by Mr. Freidman. On May 19, 2015, the New York Supreme Court granted a Seizure Order in favor of Citibank, which 6 6 of 17
was finally entered on June 12, 2015. On June 15, 2015, the Appellate Division granted Mr. Freidman and his companies a temporary stay. While the stay was in place, on July 22, 2015, the companies that had borrowed money from Citibank filed for Chapter 11 bankruptcy reorganization. 32. Meanwhile, on April 24, 2015, Capital One filed a judgment by confession against Mr. Freidman. On July 10, 2015 the Supreme Court of the State of New York, County of New York entered a judgment by confession in favor of Capital One and against Mr. Freidman for the sum of $8,484,949.30. THE TRANSFERS 33. Aware of Mr. Freidman s financial woes, Mr. Tsitiridis knew that Capital One would seek to enforce the guarantees executed by Mr. Tsitiridis in favor of Capital One. 2 34. In June 2015, Mr. Tsitiridis engaged in the conveyances discussed below, the ultimate result of which was to transfer his interest in two real estate properties to The Bridge Funding Trust, in an attempt to put them out of Capital One s reach. Conveniently, Mr. Tsitiridis wife serves as trustee of The Bridge Funding Trust. Moreover, The Bridge Funding Trust s address is 43-10 39th Street, Long Island City, New York 11104 a property owned by LIC Realty Holdings, LLC. On information and belief, Mr. Tsitiridis is the sole member of LIC Realty Holdings, LLC. The Hudson Property Transfer 35. On November 30, 2004 Mr. Tsitiridis purchased Unit No. 7A in the building 2 Indeed on March 28, 2016 Capital One filed an action pursuant to Section 3213 of New York s Civil Practice Law and Rules to collect on Guarantees executed by Mr. Tsitiridis in favor of Capital One. The action, Capital One Taxi Medallion Finance v. Savas Tsitiridis, is currently pending under Index No. 651639/2016 before Justice Oing. 7 7 of 17
known as 161 Hudson Street, New York County, City and State of New York (the Hudson Property ) from 161 Hudson LLC for $2,138,325.00. The deed was recorded on February 3, 2005 in the Office of the City Register of the City of New York, City Register File No. 2005000071565. 36. On information and belief the Hudson Property is the personal residence of Mr. and Mrs. Tsitiridis. 37. On June 30, 2015, a few weeks after Capital One filed for judgment by confession against Mr. Freidman, Mr. Tsitiridis transferred the Hudson Property to 1617A LLC in consideration of Ten Dollars ($10.00) (the Hudson Conveyance ). The deed was recorded on August 18, 2015 in the Office of the City Register of the City of New York, City Register File No. 2015000286430. 38. 1617A LLC is a New York limited liability company formed on June 22, 2015. On information and belief, Mr. Tsitiridis and Mrs. Tsitiridis each owned a 50% percent interest in 1617A LLC. 39. On June 22, 2015, the same day they formed the 1617A LLC, Mr. Tsitiridis assigned and transferred his 50% percent interest in 1617A LLC to Mrs. Tsitiridis and Fidelity Corp Limited, as Trustees of The Bridge Funding Trust. Mr. Tsitiridis recorded the assignment on October 14, 2015 in the Office of the City Register of the City of New York, City Register File No. 2015000366861. 40. On June 22, 2015, the same day they formed the 1617A LLC, Mrs. Tsitiridis assigned and transferred her 50% percent interest in 1617A LLC to herself and Fidelity Corp Limited, as Trustees of The Bridge Funding Trust. Mrs. Tsitiridis recorded the assignment on October 14, 2015 in the Office of the City Register of the City of New York, City Register File 8 8 of 17
No. 2015000366862. 41. As a result of these conveyances, the Hudson Property is now wholly owned by 1617A LLC and 1617A LLC is 100% wholly owned by The Bridge Funding Trust, for which Mrs. Tsitiridis and Fidelity Corp Limited serve as trustees. 42. On information and belief Mr. Tsitiridis and Mrs. Tsitiridis continue to live in and use the Hudson Property. The Vernon Property Transfer 43. 43-05 Vernon Boulevard, LLC is a New York limited liability company formed on December 17, 2012. 44. On December 27, 2012 43-05 Vernon Boulevard, LLC purchased from Lev Ventures, LLC and PNL Ventures, LLC commercial real estate property located at 43-01 Vernon Boulevard and 43-05 Vernon Boulevard located in the Borough and County of Queens, City and State of New York (the Vernon Property ) for $1,077,500.00. The deed was recorded on February 6, 2013 in the Office of the City Register of the City of New York, City Register File No. 2013000050379. 45. On information and belief, Mr. Freidman and Mr. Tsitiridis each owned a 50% percent interest in 43-05 Vernon Boulevard, LLC, which in turn owned the Vernon Property. 46. On June 12, 2015 Mr. Freidman assigned and transferred his 50% percent interest in 43-05 Vernon Boulevard, LLC to Everett Abitbol and Ellen M. Walker, as Trustees of The Evelyn Funding Trust, located in Belize, for no consideration. Notably the Honorable Judge Carla E. Craig of the United States Bankruptcy Court for the Eastern District of New York held that Mr. Freidman illegally transferred more than $60 million in real estate assets into offshore trusts, including The Evelyn Funding Trust, as a means of evading ex-lender Citibank. See 9 9 of 17
Citibank. N.A. v. Bombshell Taxi LLC (In re Hypnotic Taxi), 543 B.R. 365 (Bankr. E.D.N.Y. 2016). 47. Mr. Freidman recorded the assignment on July 30, 2015 in the Office of the City Register of the City of New York, City Register File No. 2015000261026. 48. Shortly after Mr. Freidman assigned and transferred his interest in the property, on June 22, 2015, Mr. Tsitiridis followed suit and assigned and transferred his 50% percent interest in 43-05 Vernon Boulevard, LLC to Mrs. Tsitiridis and Fidelity Corp Limited, as Trustees of The Bridge Funding Trust for no consideration. 49. Mr. Tsitiridis recorded the assignment on July 17, 2015 in the Office of the City Register of the City of New York, City Register File No. 2015000247180. 50. As a result of these conveyances, the Vernon Property is now wholly owned by 43-05 Vernon Boulevard, LLC and 43-05 Vernon Boulevard, LLC is 50% owned by The Bridge Funding Trust, for which Mrs. Tsitiridis and Fidelity Corp Limited serve as trustees, and 50% owned by the Evelyn Funding Trust. MR. TSITIRIDIS S FINANCIAL CONDITION 51. On or around June 30, 2015, following these conveyances, Mr. Tsitiridis s assets consisted primarily of his interests in closely held entities holding taxi medallion rights and his interest in closely held taxi cab management companies. 52. With the rising popularity of ride-sharing apps the market dynamics have shifted dramatically over the past few years. As a result, taxi medallion prices have plummeted. Because the value attributable to Mr. Tistiridis s medallion holding entities is dependent on the market value of the medallions which are illiquid and also heavily encumbered there is a high likelihood that the decline in medallion market prices effectively eliminated most if not all 10 10 of 17
residual value Mr. Tsitiridis had in these holding entities. The value of Mr. Tsitiridis s taxi management companies is equally dubious given the general decline of market conditions in the taxi industry. 53. Thus, on information and belief, Mr. Tsitiridis conveyed the Hudson Property and his interest in the Vernon Property at a time when (i) he was insolvent and/or with unreasonably small capital insufficient to pay his existing debts and probable liabilities, or (ii) such conveyances thereby rendered him insolvent and/or with unreasonably small capital insufficient to pay his existing debts and probable liabilities. 54. Further, aware of his obligations to Capital One and Mr. Freidman s financial woes, Mr. Tsitiridis knew Capital One would seek to enforce his guarantees. Knowing that his taxi holdings were of little utility to creditors, Mr. Tsitiridis transferred two valuable real estate holdings to The Bridge Funding Trust, where his wife is trustee and bearing the address of a property which Mr. Tsitiridis indirectly owns. Mr. Tsitiridis received no consideration in exchange for these transfers, placing these assets out of the reach of his creditors. 55. Accordingly, Mr. Tsitiridis conveyed the Hudson Property and his interest in the Vernon Property with an actual intent to hinder, delay or defraud Capital One. CAUSE OF ACTION ONE Fraudulent Conveyance New York Debtor and Creditor Law 273 and 278 against all Defendants to set aside and disregard a conveyance made without fair consideration by a person who is or was thereby rendered insolvent. 56. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 57. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 11 11 of 17
58. Mr. Tsitiridis conveyed the Hudson Property to Defendant 1617A LLC without fair consideration. 59. Mr. Tsitiridis conveyed the Hudson Property to Defendant 1617A LLC either at a time when Mr. Tsitiridis was insolvent or such conveyance rendered him insolvent. 60. As a result of the foregoing, Plaintiff is entitled (a) to have the Hudson Conveyance set aside to the extent necessary to satisfy its claim or (b) to disregard the Hudson Conveyance and attach or levy execution upon the property conveyed. CAUSE OF ACTION TWO Fraudulent Conveyance New York Debtor and Creditor Law 274 and 278 against all Defendants to set aside and disregard a conveyance made without fair consideration by a person engaged in a business or transaction for which the property remaining in his hands after the conveyance is an unreasonably small capital. 61. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 62. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 63. Mr. Tsitiridis conveyed the Hudson Property to Defendant 1617A LLC without fair consideration. 64. Mr. Tsitiridis conveyed the Hudson Property to Defendant 1617A LLC at a time when Mr. Tsitiridis had unreasonably small capital, or was put in that position as a result of the conveyance. 65. As a result of the foregoing, Plaintiff is entitled (a) to have the Hudson Conveyance set aside to the extent necessary to satisfy its claim or (b) to disregard the Hudson Conveyance and attach or levy execution upon the property conveyed. 12 12 of 17
CAUSE OF ACTION THREE Fraudulent Conveyance New York Debtor and Creditor Law 275 and 278 against all Defendants to set aside and disregard a conveyance made without fair consideration by a person intending or believing that he will incur debts beyond his ability to pay as they mature. 66. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 67. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 68. Mr. Tsitiridis conveyed the Hudson Property to Defendant 1617A LLC without fair consideration. 69. Mr. Tsitiridis conveyed the Hudson Property to Defendant 1617A LLC either when Mr. Tsitiridis was intending to incur, or believed he would incur debts beyond his ability to pay them as the debts matured. 70. As a result of the foregoing, Plaintiff is entitled (a) to have the Hudson Conveyance set aside to the extent necessary to satisfy its claim or (b) to disregard the Hudson Conveyance and attach or levy execution upon the property conveyed. CAUSE OF ACTION FOUR Fraudulent Conveyance New York Debtor and Creditor Law 276, 276-a, 278 against all Defendants to set aside a conveyance made with actual intent to hinder, delay or defraud either present or future creditors. 71. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 72. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 13 13 of 17
73. Mr. Tsitiridis conveyed the Hudson Property to Defendant 1617A LLC with actual intent to hinder, delay or defraud Plaintiff. 74. As a result of the foregoing, Plaintiff is entitled (a) to have the Hudson Conveyance set aside to the extent necessary to satisfy its claim or (b) to disregard the Hudson Conveyance and attach or levy execution upon the property conveyed and (c) to recover judgment for their reasonable attorney s fees incurred in this action. CAUSE OF ACTION FIVE Fraudulent Conveyance New York Debtor and Creditor Law 273 and 278 against Trustees and Savas Tsitiridis to set aside and disregard a conveyance made without fair consideration by a person who is or was thereby rendered insolvent. 75. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 76. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 77. Mr. Tsitiridis conveyed his interest in the Vernon Property to Trustees of The Bridge Funding Trust for no consideration. 78. Mr. Tsitiridis conveyed his interest in the Vernon Property to Trustees of The Bridge Funding Trust either when Mr. Tsitiridis was insolvent or was rendered insolvent by such conveyance. 79. As a result of the foregoing, Plaintiffs are entitled (a) to have the Vernon Conveyance set aside to the extent necessary to satisfy their claim or (b) to disregard the Vernon Conveyance and attach or levy execution upon the property conveyed. 14 14 of 17
CAUSE OF ACTION SIX Fraudulent Conveyance New York Debtor and Creditor Law 274 and 278 against Trustees Savas Tsitiridis to set aside and disregard a conveyance made without fair consideration by a person engaged in a business or transaction for which the property remaining in his hands after the conveyance is an unreasonably small capital. 80. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 81. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 82. Mr. Tsitiridis conveyed his interest in the Vernon Property to Trustees of The Bridge Funding Trust for no consideration. 83. Mr. Tsitiridis conveyed the Vernon Property Property to Trustees of the Bridge Funding Trust at a time when Mr. Tsitiridis had unreasonably small capital, or was put in that position as a result of the conveyance. 84. As a result of the foregoing, Plaintiffs are entitled (a) to have the Conveyances set aside to the extent necessary to satisfy their claim or (b) to disregard the Conveyances and attach or levy execution upon the property conveyed. CAUSE OF ACTION SEVEN Fraudulent Conveyance New York Debtor and Creditor Law 275 and 278 against Trustees Savas Tsitiridis to set aside and disregard a conveyance made without fair consideration by a person intending or believing that he will incur debts beyond his ability to pay as they mature. 85. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 15 15 of 17
86. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 87. Mr. Tsitiridis conveyed his interest in the Vernon Property to Trustees of The Bridge Funding Trust for no consideration. 88. Mr. Tsitiridis conveyed his interest in the Vernon Property to Trustees of The Bridge Funding Trust either when Mr. Tsitiridis was either intending to incur, or believed he would incur debts beyond his ability to pay them as the debts matured. 89. As a result of the foregoing, Plaintiffs are entitled (a) to have the Conveyances set aside to the extent necessary to satisfy their claim or (b) to disregard the Conveyances and attach or levy execution upon the property conveyed. CAUSE OF ACTION EIGHT Fraudulent Conveyance New York Debtor and Creditor Law 276, 276-a, 278 against Trustees Savas Tsitiridis to set aside a conveyance made with actual intent to hinder, delay or defraud either present or future creditors. 90. Plaintiff incorporates and re-alleges each and every allegation in paragraphs 1 to 55 above as if fully set forth herein. 91. Plaintiff holds a matured claim against Mr. Tsitiridis in the amount of $515,973.44, plus accrued interest and late fees and a matured claim against Mr. Tsitiridis in the amount of $985,188.14, plus accrued interest and late fees. 92. Mr. Tsitiridis conveyed his interest in the Vernon Property to Trustees of The Bridge Funding Trust for no consideration. 93. Mr. Tsitiridis conveyed his interest in the Vernon Property to Trustees of The Bridge Funding Trust with actual intent to hinder, delay or defraud Plaintiffs. 16 16 of 17
94. As a result of the foregoing, Plaintiff is entitled (a) to have the Conveyance set aside to the extent necessary to satisfy their claim or (b) to disregard the Conveyance and attach or levy execution upon the property conveyed and (c) to recover judgment for their reasonable attorney s fees incurred in this action. WHEREFORE, Plaintiff respectfully prays for judgment as follows a. Setting aside any fraudulent conveyances by Mr. Tsitiridis; b. An order awarding damages and attorney's fees; and c. Such other and further relief as this Court may deem just and proper. Dated New York, New York May 20, 2016 Respectfully submitted, By /s/ Robert L. Dunn Robert L. Dunn Bradley E. Honigman SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Four Times Square New York, New York 10036 T 212-735-3000 F 212-735-2000 robert.dunn@skadden.com bradley.honigman@skadden.com Attorneys for Plaintiff Capital One Equipment Finance Corp. 17 17 of 17