The ability to “clawback”[2] fraudulent transfers is an ancient,[3] but reliable, tool in
bankruptcy trustees’ armories.

Fraudulent transfers have two classes: a.) intentional; and b.) constructive. Intentional
fraudulent transfers are “yes, I intended to hinder, delay and/or defraud my creditors.”
Constructive fraudulent transfers don’t involve intent. Instead, they are transfers where the
circumstances cloud the transfers’ economic bona fides (eg. “Jack, you traded the cow for some
beans. Are you mashugah[4]? Go to your room! My creditors will go nuts.”). It doesn’t mean
you’re a fraud; just not the best horse-trader.

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