Federal Deposit Ins. Corp. v. United States

Citations: 654 F. Supp. 794; 59 A.F.T.R.2d (RIA) 309; 1986 U.S. Dist. LEXIS 18548Docket: Civ. A. No. C80-278A

Court: District Court, N.D. Georgia; October 24, 1986; Federal District Court

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Michael G. Thevis, after being convicted and imprisoned for federal crimes in 1974, attempted to sell Global Industries, Inc. to Laverne Bowden, with subsequent modifications to the transaction occurring in 1975, 1977, and 1978. Bowden used Fidelity Equipment Leasing Corp. as the vehicle for these acquisitions, ultimately becoming the parent company of Global Industries and its subsidiaries. In 1978, Fidelity Equipment Leasing facilitated the issuance of a second deed to secure debt on Global's property in Atlanta to Thevis, who assigned it to an inter vivos trust established to secure his alimony obligations to his then-wife, Joan Thevis (now Coffman). Following a series of events—including Thevis's escape from prison in April 1978—Bowden managed Fidelity until her alleged termination by Thevis. Georgia Ann Harmon, trustee of the alimony trust, oversaw the company until March 1981, when the IRS seized its assets. The Federal Deposit Insurance Corporation later foreclosed on the Marietta property, raising questions about the enforceability of the second deed to secure debt. The United States argues that the sale to Bowden was a sham, intended to keep Thevis in control of Global Industries despite his imprisonment, and that the related transactions were primarily for his benefit.

The United States asserts that Fidelity Equipment Leasing Corp. acted as an agent or alter ego of Mr. Thevis, claiming Ms. Bowden's ownership was fraudulent and that transactions between Fidelity and Thevis should be disregarded. The U.S. seeks the proceeds from the foreclosure sale of 267 Marietta Street, citing a federal tax lien filed on August 10, 1978, and a forfeiture decree under the RICO Statute dated December 11, 1979. Joan Coffman challenges the U.S.'s contradictory positions in pursuing both a lien and forfeiture, arguing that the alimony trust's mortgage is void. The original case, initiated in 1980, named both the trustee, Georgia Ann Harmon, and beneficiary, Joan Thevis (Coffman), as defendants; however, Harmon's attorney withdrew in 1982, and the trustee has since defaulted. Despite the default, the U.S. acknowledges that Coffman can protect the trust's interests. This interpleader action initiated by the Federal Deposit Insurance Corporation (FDIC) involves the surplus proceeds from the foreclosure of 267 Marietta Street, totaling over $650,000, with Coffman and the U.S. as the primary disputants. Other creditors, including NCR Corporation and Urban Industries, also claim the funds but are not actively involved. The outcome hinges on the conflict between Coffman, who claims priority based on a divorce settlement and an Alimony Trust funded by a promissory note secured by a second mortgage on the property, and the U.S., which will assert lien priority in a subsequent hearing if it prevails.

The United States claims proceeds in this case through two main avenues: a prior forfeiture decree from December 11, 1979, under the Federal RICO statute and a federal tax lien filed on August 19, 1978, stemming from Jeopardy Assessments against Michael G. Thevis, Joan Thevis (Coffman), and Global Industries, Inc. for tax years 1972 to 1975. Urban Industries and its insurers assert claims based on a judgment against Michael G. Thevis from May 1, 1978, which was domesticated in Georgia, while NCR Corporation claims through a judgment against Global Industries, Inc. recorded on May 25, 1979.

The United States alleges that a series of transactions between 1974 and 1978, involving the purported sale of Global Industries, Inc. to Fidelity Equipment Leasing Corp. (owned by Laverne Bowden), were sham transactions designed to conceal Thevis's continued control and ownership of the company. The United States seeks to have these transactions declared void. Additionally, the mortgage on Global property delivered to Thevis during the sale's restructuring is claimed to be part of the sham and issued without consideration. 

Joan Thevis Coffman disputes the sham characterization, arguing that her interest in the subject monies should be protected as an innocent purchaser for value regarding the Global mortgage, claiming enforceable rights free from the taint of the alleged sham transaction. The United States counters that Coffman lacks standing to assert such rights since the transferee of the mortgage was the alimony trust, not Coffman personally. Furthermore, the United States argues that Coffman was aware of Thevis's intentions and motives and thus cannot claim innocent party status. It also contends that Fidelity Equipment Leasing Corp. and Bowden acted as Thevis's alter ego, nullifying the transactions.

The case, previously inactive due to Tax Court litigation, proceeded to trial without a jury. Following the trial, the Court made findings of fact and conclusions of law based on the evidence and arguments presented.

Michael G. Thevis, based in Atlanta, Georgia, founded Global Industries, Inc., which owned various subsidiaries involved in adult entertainment as well as non-adult businesses, including music production and real estate. Thevis married Joan Coffman in 1951, and they had five children before their divorce in April 1978. Thevis was incarcerated from December 1974 to 1978 due to federal convictions related to obscenity, arson, and extortion.

In late 1974, Thevis agreed to sell certain adult-related assets of Global Industries to Fidelity Equipment Leasing Corp., owned by Laverne Bowden, for $5.2 million. The agreement included a small cash down payment and a promissory note, secured by Bowden’s personal guaranty and stock pledges, documented in several exhibits.

In November 1975, the initial sale was rescinded and restructured, with Fidelity purchasing 100% of Global’s stock for $16.24 million under similar security terms as the first transaction. This was documented through various legal agreements.

In March 1977, the terms of the second transaction were further renegotiated, reducing the principal debt to $11.2 million and allegedly involving additional security on real property owned by Global, although no recorded second mortgage exists.

On March 1, 1978, the promissory note from the March 1977 transaction was split into two separate notes amounting to $8,729,341 and $2 million, formalized through an amendment and new collateral promissory notes.

Michael G. Thevis entered federal prison shortly after completing the first transaction involving Global Industries, Inc., where he and Joan Thevis remained as officers and directors. In 1975, a second transaction rescinded the 1974 agreement, where Thevis purportedly sold Global Industries and its subsidiaries to Fidelity Equipment Leasing Corp. Despite the sale, Thevis retained significant powers over the non-adult segment of Global, allowing him to appoint officers, which he did even while incarcerated, installing associates Leon Walters and Patricia McLean to safeguard his interests.

The sale agreement mandated periodic payments from Fidelity to Thevis, which Fidelity failed to meet, leading to a modification in 1977 that reduced the sale price and adjusted payment schedules. This third transaction required Fidelity to provide deeds to secure debt on Global's real property, including property at 267 Marietta Street, which were reportedly not recorded or executed in 1977. In 1978, during divorce proceedings, Thevis finalized the sale of Global to Ms. Bowden, executing a deed to secure debt on the Marietta property, which was recorded on May 8, 1978. 

Atlanta attorneys Gilbert Deitch and Warren Shulman represented Thevis and Bowden in these transactions. Although Bowden claimed to be the sole shareholder of Fidelity, no stock was issued to her, and an unexecuted certificate was later discovered. Global had significant receivables due from Thevis at the time of the sale, which Fidelity continued to record as loans rather than retired debts. While in prison, Thevis maintained communication with Fidelity, and in 1976, funds were used to covertly pay a chaplain to facilitate his phone privileges. Thevis described the sale to Bowden as a 'front' and a 'sham.' 

In late 1977, Joan Thevis initiated divorce proceedings, seeking a substantial settlement while owning minimal assets. Her attorney filed a lis pendens notice on their residence, indicating ongoing litigation over the property title. By 1978, Michael and Joan finalized their divorce Settlement Agreement, resolving all marital rights and obligations.

Michael Thevis agreed to convey the family residence, provide lifetime alimony, transfer several vehicles, life insurance policies, and stock shares to Joan Thevis, as well as establish a trust for their five children and convey properties in Florida and Georgia. Negotiations led to a Settlement Agreement drafted by Joan Thevis' attorney, Morton Levine, and executed by Michael Thevis on April 25 or 26, 1978, in Indiana. The agreement was finalized with Joan Thevis' signature on April 28, 1978, in Atlanta, Georgia. Several legal documents were executed as part of the agreement, including an Alimony Trust Agreement and various assignments related to debt and stock.

On April 28, 1978, the Superior Court of Fulton County, Georgia, granted the couple a divorce. That same night, Michael Thevis escaped from prison. At the time of the divorce proceedings, both parties were under an IRS income tax examination, with Joan Thevis having authorized T.D. James as her representative. During early 1978, Michael Thevis faced multiple legal challenges, including a federal grand jury inquiry, a civil arson case in Kentucky, and state criminal charges in Florida. Joan Thevis received assistance from T.D. James, who provided insights into their financial situation during negotiations. The property settlement negotiations resulted in several legal documents executed between April 26-28, 1978, while Michael Thevis was incarcerated in Indiana, facing a recent jury verdict against him.

Michael Thevis, anticipating a significant civil tax case and concerned about the outcomes of ongoing litigation and criminal investigations, transferred almost all his assets, including real property, stocks, life insurance, and certain notes related to Global Industries, Inc., to his wife, Joan Thevis, or to trusts benefiting her and their children. He agreed to pay her $12,000 monthly in alimony for life. The settlement included a restructuring of his debt obligations to Fidelity, splitting a $10.7 million obligation into two notes—Note A for $2 million and Note B for $8,729,341. The deeds securing the original obligation were modified to secure only Note A, which is now associated with Joan Thevis, who is pursuing a claim in court.

Two inter vivos trusts were established, with Georgia Ann Harmon appointed as trustee. One trust was for the children, and Note B was assigned to it, while an 'alimony trust' was created for Joan Thevis, holding Note A. The alimony payments were to be made from the income generated by Note A unless Michael defaulted on his obligations. Upon Joan's death, the trust would terminate, reverting its assets to Michael or his estate.

At the time these agreements were executed, Michael owed over $2.5 million in unpaid income taxes to the United States, and Global Industries, Inc. owed more than $10 million. A power of attorney for Georgia Ann Harmon and various deeds related to these transactions were recorded on May 8, 1978. Prior to their divorce, the IRS requested that Michael and Joan extend the statute of limitations for tax assessments, which they agreed to. Subsequently, a Jeopardy Assessment was made against them and Global Industries without prior notice, but these assessments were later reduced and satisfied in Tax Court. Additionally, a claim for forfeitures under RICO was recorded on June 21, 1978.

The United States recorded a tax lien against Global Industries, Inc., and against Michael and Joan Thevis on August 10, 1978, with specific references to Deed Book 7026, Pages 367-368 in Fulton County Records. An earlier claim by Urban Industries, Inc. was recorded on June 22, 1978, stemming from a judgment dated May 1, 1978. NCR Corporation's judgment against Global was recorded on May 25, 1979. Joan Thevis Coffman has an alimony claim against Michael G. Thevis, which is in arrears, exceeding the corpus interpled in this case.

Michael G. Thevis escaped custody on April 28, 1978, and was captured on November 9, 1978. He had executed certain documents during his escape. On June 10, 1978, Thevis and others were indicted on federal criminal charges, including RICO offenses, although Fidelity was acquitted later. Following the indictment, a witness statement was provided to Global, which Thevis had in his possession at the time of his capture.

On August 9, 1978, large jeopardy assessments were made against Fidelity, Global, and Thevis, with a federal tax lien recorded against Global the next day. At that time, Global was based at 267 Marietta Street, Atlanta, Georgia, with secured debts held by the Federal Deposit Insurance Corporation and Georgia Ann Harmon, trustee for the alimony trust.

Laverne Bowden controlled Global Industries from 1976 to 1978, managing payments to the Thevis family. In late 1978, she took actions contrary to Fidelity's interests and established a California corporation, Jerry's G. G, Inc., transferring Fidelity assets under the guise of negotiation. In the summer of 1979, shortly before a major criminal trial, Thevis terminated Bowden, who subsequently filed a civil suit against Fidelity for unpaid wages. Despite her personal guarantee of Fidelity’s debt to Thevis for purchasing Global, no legal action has been initiated against her regarding those guarantees.

Ralph Mitchum briefly assumed control of Fidelity after Ms. Bowden's departure but left at Mr. Thevis' direction. Lynda Ivy then claimed control over Fidelity Equipment Leasing Corp. starting in 1979, acquiring retail outlets under the name 'Ibron Industries.' Ivy's actions were known to Fidelity/Global attorneys and Mr. Thevis, who later demanded a stake in Ibron during a meeting in federal prison, implying a threat. In 1979, during a trial involving Mr. Thevis and others, Georgia Ann Harmon misused trust funds to cover Thevis' legal expenses, violating the terms of the alimony trust. Concurrently, assets of Global Industries were sold to pay for Thevis' defense, with Harmon executing the sale documents under the assumption that the trusts controlled Fidelity/Global.

In June 1980, Harmon notified Ms. Bowden that Fidelity Equipment Leasing was delinquent on obligations to the trusts, claiming that all Fidelity stock had vested in her as trustee since 1979, effectively attempting to rescind the 1974-1978 sale of Global to Fidelity. From 1979 to 1981, while Fidelity/Global was under the control of the trusts, payments were made to associates of Thevis' co-defendants, which were directed or permitted by Thevis and Harmon, constituting an abuse of corporate resources and trust funds. In March 1981, following a court order, the IRS seized and sold all Global/Fidelity assets, terminating the business and causing Fidelity to cease alimony payments to Joan Thevis, resulting in Thevis defaulting on his obligations.

In 1979, Michael G. Thevis was convicted of racketeering related to the 1970 murder of Kenneth Hanna, leading to the conviction of Global Industries, Inc. as Thevis's alter ego. As a result, Global was sentenced to forfeit its interest in 267 Marietta Street. Following this conviction, Global defaulted on its mortgage to the FDIC, which subsequently sold the property on January 1, 1980. After settling debts, approximately $360,000 remained, which the FDIC interpleaded into court, leading to its dismissal from the case.

Claims against these funds included those from the United States based on federal tax liens and forfeiture decrees, Georgia Ann Harmon as trustee of a second deed to secure debt, and Joan Thevis (now Coffman) from an alimony trust. Harmon defaulted, allowing Coffman to pursue claims on behalf of the trust. At the time of the FDIC sale, Thevis was compliant with his alimony obligations, meaning Coffman had no current claim against the trust's principal, which only matured after an IRS seizure in 1981.

Georgia Ann Harmon, acting as Trustee for the alimony and irrevocable living trusts, was appointed by Thevis and relied on attorney advice. Her primary concern was ensuring timely payments on promissory notes funding the trusts. A court inquiry arose regarding the Settlement Agreement executed by Thevis in jail on April 26, 1978, which was disputed by attorney Warren Shulman. Morton Levine, who prepared the original agreement, confirmed it was executed correctly by both Thevis and Coffman and that it reflected the results of extensive negotiations. Levine emphasized that he had carefully considered all aspects of alimony and child support in the agreement and was unaware of any intention from either party to defraud creditors.

The attorney's primary responsibility was to secure as many of Michael G. Thevis' assets as possible for his client and her children, despite uncertainty regarding the total value of Thevis' holdings at the time of divorce. Under Section 6151 of the Internal Revenue Code, federal taxes are deemed due as of the date a tax return is required, regardless of when they are assessed. Federal tax liens do not form until the assessment, notice, and demand for payment occur, meaning they did not attach before the questioned property transfer. In this case, the government may pursue remedies under Georgia's fraudulent conveyance laws due to the relevant property transfers, including the Global Industries Security Deed and a $2,000,000 Promissory Note tied to an alimony trust. 

The record title of the fund in question is held by Joan Thevis Coffman, based on her status as a beneficiary of a second mortgage on a property foreclosed by the FDIC. The government contests her claim, asserting that her title acquisitions were fraudulent under O.C.G.A. 18-2-22, which outlines acts deemed fraudulent against creditors. These include transfers by insolvent debtors with reserved benefits to the debtor, transactions made with intent to defraud creditors, and voluntary transfers without valuable consideration by insolvent debtors. The court previously noted that each of the specified acts has two elements: debtor insolvency and reserved benefits for the first act; debtor intent and assignee knowledge for the second; and debtor insolvency for the third.

A conveyance or assignment lacking valuable consideration is scrutinized under Georgia law, particularly O.C.G.A. 18-2-22(2), which requires proof of the debtor's intent to defraud creditors and the assignee's awareness or reasonable suspicion of that intent. The fraudulent conveyance statute must be interpreted in conjunction with the innocent subsequent purchaser statute, O.C.G.A. 18-2-23, which protects a bona fide purchaser who acquires property from a fraudulent vendee without notice of the fraud. For a purchaser to be safeguarded against claims from defrauded creditors, they must lack notice or reasonable suspicion of fraud. If a conveyance is void due to the debtor's fraudulent intent, any subsequent transfer to a grantee who has notice of that fraud is also void, even if the grantee offers valuable consideration. A purchaser with only reasonable grounds for suspicion but no actual notice may still maintain title. The government carries the burden of proof to establish fraudulent conveyances, needing to demonstrate both components of the statute for at least one transaction. Additionally, transactions between spouses are subject to closer examination, requiring both parties to prove good faith.

Joan Coffman asserts that if the transaction is viewed as between spouses, she has provided sufficient evidence of good faith. If considered a transaction between Michael G. Thevis and the Trust or its Trustee, the Government must prove fraudulent conveyance. The U.S. claims that Fidelity Equipment Leasing Corp. and Laverne Bowden acted as Michael Thevis's alter ego, rendering their transactions ineffective. Generally, corporations are separate legal entities, but this separation may be disregarded if the corporate form is merely a facade for an individual’s interests, particularly to avoid justice or perpetrate fraud. Courts may pierce the corporate veil when there is a commingling of personal and corporate assets and when the corporation serves as an instrumentality for personal affairs. Establishing the alter ego doctrine requires showing a unity of interest and ownership that negates the separate identities of the corporation and its owners, thus promoting injustice or fraud. Factors indicating an alter ego status include mixing personal and corporate affairs. Federal courts have disregarded corporate entities formed to obstruct tax collection, providing remedies to protect creditor rights.

The excerpt outlines the legal principles surrounding the concept of "piercing the corporate veil," where a corporation may be disregarded to prevent injustice, fraud, or evasion of liability. The burden of proof lies with the proponent to demonstrate by a preponderance of evidence that a corporation is a sham created for illegitimate purposes, as established in case law including Avco Delta Corp. v. United States and Maule Industries v. Gerstel. It emphasizes that the determination to pierce the corporate veil depends on specific circumstances, particularly whether a subsidiary functions merely as an instrumentality of the parent company, thereby losing its separate corporate identity.

The case presents compelling evidence that Ms. Bowden and Fidelity Equipment Leasing Corp. acted as alter egos of Michael Thevis, noting the lack of formal stock issuance to Ms. Bowden and her termination as president in 1979. Corporate formalities were neglected, with no corporate officers present from 1979 to 1981, and payments made by Fidelity to individuals associated with Thevis who did not perform any work for the company. Communication between Thevis and the business continued despite his incarceration, and he characterized the Fidelity transactions as a sham. Additional evidence includes the sale of assets for legal fees and Thevis's ongoing control over both Fidelity Equipment Leasing Corp. and its subsidiary, Global Industries, Inc., reinforcing the conclusion that these entities were effectively alter egos of Thevis. The United States also introduced a theory regarding conveyances made by Thevis to a trust related to claims by Joan Coffman.

The Government alleges that Michael G. Thevis established a trust for fraudulent purposes, either for himself or through his Trustee, Georgia Ann Harmon. Joan Coffman is identified as a contingent beneficiary of the trust, asserting that her rights to litigate arise only if Harmon defaults. Coffman maintains that, like Harmon, she took her interest without knowledge of Thevis's alleged fraudulent intent, thereby asserting that the transaction is valid against claiming creditors under the fraudulent conveyance statute. If the trust was indeed set up to defraud creditors, Coffman argues she qualifies as an innocent purchaser under O.C.G.A. 18-2-23, entitled to recover for value without notice of fraud.

The legal framework establishes that the trustee holds legal title while beneficiaries hold equitable title. Typically, the trustee is the proper party in legal proceedings; however, if the trustee defaults, beneficiaries can step in to protect their interests. In this case, after Harmon’s attorney withdrew and she ceased participating in the litigation, Coffman sought to defend her rights as a beneficiary.

The court must consider both Harmon’s and Coffman’s knowledge regarding the trust’s establishment under O.C.G.A. 18-2-22 and 18-2-23 to assess whether Coffman is an innocent purchaser. At the time of the disputed transaction, Global Industries, Inc. was significantly indebted to the United States and insolvent, with Thevis facing a substantial adverse jury verdict and ongoing federal investigations, including serious financial liabilities.

Mr. Thevis concealed significant assets, including jewelry and cash, from creditors and his wife's attorney, rendering these assets unavailable for consideration in assessing his solvency. At the time of document execution, he intended to evade imprisonment and was legally insolvent. The mortgage arrangement executed by Michael Thevis was deemed fraudulent under O.C.G.A. § 18-2-22, as he transferred the Global mortgage to an alimony trust despite substantial debts, including over $2.5 million owed to the United States and a $670,000 adverse jury verdict, alongside an additional $1 million debt to Global Industries, Inc. He divested himself of nearly all visible assets, maintaining only the Valley Tarn residence, which resulted in his insolvency.

The alimony trust, where Thevis was the primary income beneficiary unless he defaulted on alimony, allowed him to borrow against its insurance policy cash value and ensured the corpus would revert to him or his estate upon his wife's death. Consequently, the mortgage assignment to the alimony trust was a voidable transfer by an insolvent party retaining benefits, as stipulated by O.C.G.A. § 18-2-22(1).

Joan Thevis (now Coffman), as a contingent beneficiary, claims rights to the trust as a bona fide purchaser, a claim disputed by the Government. The legal framework indicates that a transfer can be invalidated if the transferee had reasonable grounds to suspect fraudulent motives. Michael Thevis, as both settlor and primary beneficiary of the trust, was aware of his fraudulent intent regarding asset transfers.

The trustee, Georgia Ann Harmon, a close relative of Thevis, acted on his behalf, facilitating transactions that benefited him, including payments to a co-defendant and using trust funds for his legal expenses. The assignment to the alimony trust, although part of a Settlement Agreement, was executed under a power of attorney by Harmon while Thevis was evading law enforcement, with documents dated around the time of his escape.

Formal recording of the property interest did not occur until May 8, 1978, with all documents seemingly executed simultaneously. Upon receiving title, the trust or its representative was aware of Michael Thevis's escape. Interests derived from a fugitive are inherently dubious. Thevis's legal issues were widely publicized in Atlanta prior to April 28, 1978, making it implausible for his foster sister, Georgia Ann Harmon, to be unaware of these reports. If Harmon lacked knowledge of Thevis's fraudulent intent, she still had reasonable grounds for suspicion at the time of the trust assignment, either before or after his escape.

The Government asserts that Joan Coffman, formerly Ms. Thevis, had no claim to the mortgage proceeds until her alimony payments ceased in 1981. She received alimony until that year, and at the time the contested funds were generated, there was no default on those payments. Her rights to access the trust corpus became contingent upon the cessation of her alimony. The alimony obligation was not a lien against the mortgage and associated funds, and there is no evidence that Coffman ever enforced her claim for unpaid alimony through a writ of execution, as required by Georgia law. As of the case's initiation, her claim to the funds was contingent, while the Government's tax liens and forfeiture decrees held priority.

Coffman contends that she should receive the contested funds as a "bona fide purchaser" despite the potential fraudulent nature of the transactions involved. She argues that her legitimate divorce from Thevis and the equitable distribution of marital property constituted sufficient consideration. The Government counters that Coffman had full notice of potential claims and was involved with the entities generating those claims, thus disqualifying her as a bona fide purchaser. The Government maintains that Coffman was aware or had reasonable grounds to suspect several factors regarding Thevis: his status as a federal prisoner, the assignment of his notes to trusts with no visible income to fulfill his alimony, and his hidden assets, with both Coffman and attorney Morton Levine acknowledging their suspicions about these hidden assets.

Ms. Coffman was aware that Mr. Thevis intended to conceal his assets. He faced a $670,000 jury verdict reported in the Atlanta Constitution and had criminal charges against him in Florida, along with an ongoing federal grand jury investigation in Atlanta. Knowledge of potential criminal activity renders the transferee (Coffman) alert to possible fraudulent intentions of the transferor (Thevis), as established in Duncan v. First National Bank Of Cartersville.

Additionally, a civil tax investigation was in progress, during which Ms. Coffman appointed T.D. James as her power of attorney, extended statutes of limitations, and provided financial records to the IRS. James was also aware of the IRS's investigation of Fidelity/Global. Ms. Coffman recognized Thevis's self-identification as "Supreme Head," indicating she understood his intent to manipulate assets for personal gain, thus making her aware that the sale involving Thevis and Fidelity was fraudulent.

After negotiations for a $2 million settlement, Ms. Coffman obtained several significant assets, including a mansion, land in Florida and Georgia, a stock portfolio, and life insurance policies, which were transferred to trusts as per the Settlement Agreement. Thevis retained only the Valley Tarn residence, which was later sold by the IRS, while other hidden assets (cash, foreign deposits, jewelry) were concealed from creditors and Ms. Coffman's attorney. 

All visible assets of Thevis, except for a minor inter vivos trust, were acquired by Ms. Coffman. Thevis, as an insolvent debtor, created a trust for fraudulent purposes, making it void under O.C.G.A. § 18-2-22(1). Transactions from 1974 to 1978 aimed at delaying and defrauding creditors violated O.C.G.A. § 18-2-22(2). The establishment of Fidelity Equipment Leasing Corp. and related transactions also served to delay or defraud creditors.

Knowledge of the assignee, Joan Thevis (now Coffman), and trustee, Georgia Ann Harmon, regarding their interests in the trust became relevant in April or May 1978, coinciding with the conveyance granting them contingent beneficiary and trustee status. The Court found evidence indicating that Harmon breached her fiduciary duty, which is linked to her cooperation in the fraudulent purpose of the trust. Both Harmon and Thevis had reasonable grounds to suspect that a second security deed against the property at 267 Marietta Street was intended by Michael G. Thevis to delay or defraud creditors, violating O.C.G.A. 18-2-22(2). The deed executed from Global Industries to Michael G. Thevis constituted self-dealing by an insolvent debtor who created a trust for his benefit, contravening O.C.G.A. 18-2-22(1). The intent behind these actions was to defraud creditors while ostensibly providing for Thevis's wife during divorce proceedings. Harmon and Thevis are not considered subsequent purchasers protected under O.C.G.A. 18-2-23. Consequently, the transactions are declared void, and Thevis's claims to proceeds from the sale of the property and interpled funds are denied. A further hearing will be scheduled to determine the priorities of any other claims regarding the funds in question.