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New York Judgment Evasion Offense: Legal Definition and Criminal Consequences
The New York Judgment Evasion Offense refers to criminal acts involving the intentional concealment, destruction, or fraudulent transfer of property to obstruct a creditor’s lawful enforcement of a court judgment. These acts are prosecuted under civil enforcement and criminal obstruction statutes, reflecting the state’s strict stance against manipulation of asset visibility to avoid legal obligations.
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1. New York Judgment Evasion Offense: What the Law Prohibits
This offense targets deliberate interference with enforcement proceedings by distorting the appearance or accessibility of a debtor’s assets.
New York Judgment Evasion Offense: Key Forms of Prohibited Conduct
Under New York law, judgment evasion can take multiple forms:
- Concealment: Hiding or transferring assets under another name to make them unreachable.
- Destruction: Intentionally damaging physical property to reduce or erase its value.
- Fraudulent Conveyance: Falsely transferring ownership to a third party while retaining de facto control.
- Fictitious Debt Creation: Creating fake liabilities to devalue net assets on record.
These behaviors, although civilly actionable, may also rise to criminal obstruction if executed willfully to impair court authority.
New York Judgment Evasion Offense: Legal Concept of Enforcement
In New York, enforcement refers to court-supervised procedures that compel a judgment debtor to satisfy a lawful obligation. It includes property liens, wage garnishment, bank restraints, and asset seizures. These mechanisms are governed primarily by the Civil Practice Law and Rules (CPLR) § 5222–§ 5230, but criminal penalties may apply when enforcement is obstructed through deceit or bad faith.
2. New York Judgment Evasion Offense: Statutory and Criminal Liability
While New York does not have a statute directly named “judgment evasion,” conduct resembling fraudulent asset hiding can be prosecuted under Penal Law § 205.70 and related obstruction statutes.
New York Judgment Evasion Offense: Related Criminal Statutes
| Statutory Reference | Legal Provision | Maximum Penalty |
|---|---|---|
| Penal Law § 205.70 | Hindering Prosecution or Obstruction | 4 years (Class E felony) |
| Debtor and Creditor Law § 273 | Fraudulent Conveyance | Civil nullification of transfer |
| CPLR § 5240 | Contempt of court for enforcement avoidance | Fine or imprisonment |
Judgment evasion through asset manipulation may be prosecuted as obstruction of governmental administration, scheme to defraud, or contempt, depending on intent and outcome .
3. New York Judgment Evasion Offense: Conditions for Criminal Charge
A conviction requires proof beyond civil noncompliance. The prosecution must establish that the defendant:
- Was aware of ongoing or imminent enforcement (e.g., judgment or lien),
- Acted with the specific intent to frustrate legal recovery, and
- Engaged in acts that materially interfered with lawful procedures.
New York Judgment Evasion Offense: When Liability Attaches
Criminal charges may be triggered even if enforcement hasn’t yet succeeded. For example, if a debtor learns of an impending judgment and transfers all bank funds to a family member’s account, this can support intent-based prosecution. The actual success of evasion is not a requirement.
4. New York Judgment Evasion Offense: Responding to Allegations
If accused of judgment evasion, defendants should understand the legal nuances and prepare timely defenses.
New York Judgment Evasion Offense: Common Legal Defenses
Some defenses include:
- Lack of intent: The asset transfer or debt creation was part of routine business or financial management.
- Good faith misunderstanding: No awareness of active enforcement or misjudgment of legal effect.
- Lack of actual concealment: Assets were disclosed or traceable despite the transfer.
In many cases, preemptive disclosure and negotiated resolutions can mitigate criminal exposure, especially if the enforcement authority has not yet issued a contempt motion or referral to prosecution.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
