SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF KINGS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x CAPITAL ONE EQUIPMENT FINANCE CORP., D/B/A CAPITAL ONE TAXI MEDALLION FINANCE, Plaintiff, -against- RAJA G. SARWAR and RIFFAT ROBINA, Defendants. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x Index No. VERIFIED COMPLAINT Plaintiff Capital One Equipment Finance Corp., doing business as Capital One Taxi Medallion Finance ( Plaintiff ), by and through its undersigned counsel, McCarter & English, LLP, by way of its Verified Complaint against Defendants Raja G. Sarwar ( Sarwar ) and Riffat Robina ( Robina ), respectfully alleges THE PARTIES 1. At all times relevant to this action, Plaintiff was and is a New York corporation with a principal place of business in New York, New York. 2. Sarwar is a natural person having an address in Brooklyn, New York. 3. Robina is a natural person having an address in Brooklyn, New York. JURISDICTION AND VENUE 4. This Court has jurisdiction over this matter under CPLR 301 because Defendants are domiciled in the State of New York and the real property at issue in this matter is located in the State of New York. 5. Venue is proper in this Court pursuant to CPLR 503(a) because Defendants reside in the State of New York, County of Kings and the real property at issue in this matter is 1 of 9
located in the State of New York, County of Kings. FACTUAL ALLEGATIONS The Note 6. Sarwar executed a Promissory Note (the Note ) dated September 24, 2013, in favor of XL Capital LLC ( XL Capital ) for repayment of the sum of $840,000. A true and correct copy of the Note is attached hereto as Exhibit A. 7. XL Capital transferred the Note to Plaintiff. 8. Plaintiff is in physical possession of the original Note. 9. In connection with the Note, Sarwar executed that certain Affidavit for Judgment by Confession (the Judgment ). A true and correct copy of the Judgment is attached hereto as Exhibit B. 10. Pursuant to the Judgment, Sarwar acknowledged his liability under the Note, and confessed judgment in favor of XL Capital and its assigns, in the sum of $840,000, plus interest and reasonable attorneys fees. See Exhibit B. 11. Pursuant to the terms of the Note, interest shall accrue at 3.75% per annum (the Interest Rate ). See Exhibit A, p. 1. 12. Pursuant to the terms of the Note, Sarwar shall make monthly payments of principal and interest in the amount of $4,318.70, commencing on November 1, 2013. See Exhibit A, p. 1. 13. Pursuant to the terms of the Note, all sums shall be due and payable on October 1, 2016 (the Maturity Date ). See Exhibit A, p. 1. 14. Pursuant to the terms of the Note, if any payment is not made within ten days of its due date, Sarwar agreed to pay a late charge of 5% of each payment so overdue. See Exhibit 2 2 of 9
A, p. 2. 15. Pursuant to the terms of the Note, Sarwar shall be in default for his failure to timely pay any sum required by the Note. See Exhibit A, p. 1. 16. Pursuant to the terms of the Note, following a default or the Maturity Date, the Interest Rate shall increase to the highest rate permitted by law (the Default Rate ). See Exhibit A, p. 1. 17. Pursuant to the terms of the Note, Sarwar agreed to pay all costs of collection, including reasonable attorneys fees and disbursements, in case the unpaid principal balance of the Note, or any payment of principal and/or interest is not paid when due. See Exhibit A, p. 2. 18. Sarwar defaulted under the terms of the Note by, inter alia, failing to pay all sums owed under the Note by the Maturity Date. 19. By letters dated April 20, 2017 and May 9, 2017, Sarwar was notified of the default, and Plaintiff demanded full payment of all sums due under the Note. A true and correct copy of the letters are attached hereto as Exhibit C and Exhibit D. 20. Notwithstanding Plaintiff s demand, Sarwar has failed to pay all amounts due under the Note and interest continues to accrue at the Default Rate. The Property 21. On November 12, 2014, Sarwar purchased real property located at 1295 Rogers Avenue, Brooklyn, New York 11210 (the Property ) for $675,000. A true and correct copy of the Deed and Real Property Transfer Report is attached hereto as Exhibit E. 22. Sarwar did not finance the purchase price of the Property by obtaining a mortgage loan. Therefore, as of the date of purchase, the Property had equity in the approximate amount of $675,000. 3 3 of 9
23. On January 5, 2017, Sarwar transferred his undivided interest in the Property to Robina, for the stated consideration of $10.00 and a sale price of $0.00. A true and correct copy of the Deed and Real Property Transfer Report is attached hereto as Exhibit F. 24. Based on a search of public records, and upon information and belief, at the time of the transfer of the Property, the Property had an approximate fair market value in the range of $1,000,000 to $1,100,000. 25. Therefore, at the time of the transfer of the Property, the Property had equity in the amount of at least $1,000,000. Sarwar s Assets 26. Upon information and belief, the only assets of substantial monetary value owned by Sarwar at the time of the transfer of the Property were the Property, New York City taxi medallion number 7T29 (the Medallion ) and a 2013 Toyota. 27. At the time of the transfer of the Property, the value of the Medallion and 2013 Toyota together was less than the amount owed by Sarwar under the Note. FIRST CAUSE OF ACTION (The Note) 28. Plaintiff incorporates and re-alleges each and every allegation set forth above as if 29. Sarwar executed the Note and agreed to specific payment terms, one of which was full payment by the Maturity Date. 30. Sarwar failed to pay all sums owed under the Note by the Maturity Date. 31. Sarwar breached the terms of the Note. 32. All sums due under the Note are currently due and payable. 4 4 of 9
Sarwar for all sums due under the Note, together with attorneys fees and costs and lawful interest thereon, and for such other and further relief as this Court may deem just and proper. SECOND CAUSE OF ACTION (Fraudulent Conveyance of the Property Pursuant to NY DCL Section 273) 33. Plaintiff incorporates and re-alleges each and every allegation set forth above as if 34. Plaintiff is a creditor of Sarwar as defined under NY DCL Section 270. 35. At the time of the transfer of the Property, Sarwar s assets were less than the amount that would be required to pay his probable liability on his existing debts, which debts include the amounts due under the defaulted Note. 36. At the time of the transfer of the Property, Sarwar was insolvent, or became insolvent as a result thereof, as defined under NY DCL Section 271. 37. Sarwar transferred the Property to Robina without fair consideration as defined under NY DCL Section 272. Section 273. 38. The conveyance of the Property to Robina was fraudulent pursuant to NY DCL Defendants, declaring the conveyance of the Property fraudulent pursuant to NY DCL Section 273, setting aside the conveyance of the Property, allowing Plaintiff to attach or levy execution upon the Property, awarding Plaintiff the value of the Property, including interest and appreciation, awarding Plaintiff fees and costs pursuant to NY DCL Section 276-a, and for such other and further relief as this Court may deem just and proper. 5 5 of 9
THIRD CAUSE OF ACTION (Fraudulent Conveyance of the Property Pursuant to NY DCL Section 274) 39. Plaintiff incorporates and re-alleges each and every allegation set forth above as if 40. Plaintiff is a creditor of Sarwar as defined under NY DCL Section 270. 41. Sarwar transferred the Property to Robina without fair consideration as defined under NY DCL Section 272. 42. At the time of the transfer of the Property, Sarwar was engaged or was about to engage in a business or transaction for which the property remaining in his hands was an unreasonably small capital. Section 274. 43. The conveyance of the Property to Robina was fraudulent pursuant to NY DCL Defendants, declaring the conveyance of the Property fraudulent pursuant to NY DCL Section 274, setting aside the conveyance of the Property, allowing Plaintiff to attach or levy execution upon the Property, awarding Plaintiff the value of the Property, including interest and appreciation, awarding Plaintiff fees and costs pursuant to NY DCL Section 276-a, and for such other and further relief as this Court may deem just and proper. FOURTH CAUSE OF ACTION (Fraudulent Conveyance of the Property Pursuant to NY DCL Section 275) 44. Plaintiff incorporates and re-alleges each and every allegation set forth above as if 45. Plaintiff is a creditor of Sarwar as defined under NY DCL Section 270. 46. Sarwar transferred the Property to Robina without fair consideration as defined 6 6 of 9
under NY DCL Section 272. 47. At the time of the transfer of the Property, Sarwar intended to incur or believed that he would incur debts beyond his ability to pay as same matured. Section 275. 48. The conveyance of the Property to Robina was fraudulent pursuant to NY DCL Defendants, declaring the conveyance of the Property fraudulent pursuant to NY DCL Section 275, setting aside the conveyance of the Property, allowing Plaintiff to attach or levy execution upon the Property, awarding Plaintiff the value of the Property, including interest and appreciation, awarding Plaintiff fees and costs pursuant to NY DCL Section 276-a, and for such other and further relief as this Court may deem just and proper. FIFTH CAUSE OF ACTION (Fraudulent Conveyance of the Property Pursuant to NY DCL Section 276) 49. Plaintiff incorporates and re-alleges each and every allegation set forth above as if 50. Plaintiff is a creditor of Sarwar as defined under NY DCL Section 270. 51. Sarwar transferred the Property to Robina with the actual intent to hinder, delay or defraud Plaintiff. Section 276. 52. The conveyance of the Property to Robina was fraudulent pursuant to NY DCL Defendants, declaring the conveyance of the Property fraudulent pursuant to NY DCL Section 276, setting aside the conveyance of the Property, allowing Plaintiff to attach or levy execution upon the Property, awarding Plaintiff the value of the Property, including interest and 7 7 of 9
appreciation, awarding Plaintiff fees and costs pursuant to NY DCL Section 276-a, and for such other and further relief as this Court may deem just and proper. Dated May 26, 2017 McCarter & English, LLP Attorneys for Plaintiff Capital One Equipment Finance Corp. By/s/ Clement J. Farley Clement J. Farley 245 Park Avenue, 27th Floor New York, New York 10167 (212) 609-6800 8 8 of 9
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