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Your client has expressed an intention to transfer his assets to a numbered company for the purpose of defrauding his creditors. What must you do?

1 Answer

5 votes

Final answer:

As a legal professional, you must refuse to aid a client intending to defraud creditors and must inform them that such actions are illegal and unethical. You must also adhere to legal and ethical standards, which may require reporting the client's intentions, depending on jurisdictional laws.

Step-by-step explanation:

If your client has expressed an intention to transfer his assets to a numbered company to defraud creditors, as a legal professional, you are obliged to refuse to assist in such an endeavor. Fraudulent conveyance is a serious legal matter and assisting a client in defrauding creditors can result in legal consequences for both the client and the attorney involved.

First, you should inform the client that their intended action is illegal and would constitute fraud. Second, you must make it clear that you cannot participate or provide assistance in any illegal activities. Lastly, you are required to adhere to legal and ethical standards which demand that you do not facilitate or condone such behavior. In many jurisdictions, lawyers have a duty to report such intentions, depending on the severity of the case and the laws in place.

It is important to approach this situation with professionalism and clear communication to ensure that the client understands the gravity of their expressed intentions and to protect yourself from potential professional misconduct.

answered
User Yaroslav Brovin
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