Federal National Mortgage Association v. Olympia Mortgage Corporation

792 F. Supp. 2d 645 (2011)

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Nature of the Case

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Facts

Olympia (D) was insolvent at least from December 31, 1997, and possibly for its entire existence. The Donner Relatives consist of Toby Donner, Abe Donner's wife; Naftali and Chaim Donner, Abe Donner's sons; Perry Lerner and Yocheved and Sarah Donner, Abe Donner's daughters; and Nachema Donner, Abe Donner's daughter-in-law and Chaim Donner's wife. D transferred money to the Donner Relatives from 1998 through 2004. These transfers took the form of payments evidenced by W-2 Wage and Tax Statement forms ('W-2s'), as well as payments for healthcare insurance and mortgage payments made on their behalf. None of the relatives claim to have provided any services to D in exchange for the monies or benefits they have received. They claim that all of the transfers were part of Abe Donner's compensation for the services that he provided as President of D. Between 1998 and 2003, Abe Donner received between $99,814.55 and $143,261.12 in compensation each year. Abe Donner's W-2s do not include the amounts transferred to the Donner Relatives. Abe flat out claims the transfers to his family were part and parcel of my compensation as President of D. During his deposition, Abe took the Fifth Amendment. Abe did not have an office at D and was not involved in day-to-day operations. D moved for summary judgment in its cross-claims.