Family Law

Forbes? Divorce a Ploy to Avoid Restitution?

By mbrickley

According to the Associated Press, Caren Forbes filed for divorce from her husband Walter in the Bridgeport Superior court last January, citing their marriage was ?irretrievably? broken.

Walter Forbes was the CEO for the company Cendant, which owns the well-known brands Ramada, Howard Johnson, Avis, Coldwell Banker and Century 21.

But he was allegedly involved in fraud schemes within the company and was sentenced to 12 years in prison in 2007. He was convicted of conspiracy to commit securities fraud and two counts of making false statements.

In addition to jail time, Walter Forbes was ordered to pay restitution for his part in the fraud schemes that cost his company and its investors $3 billion.

While filing for divorce last year, Caren requested that all the property from her imprisoned husband be transferred and put in her name.

Federal Prosecutors requested to intervene in the divorce proceedings. USA Today reported that the prosecution believed the divorce request was a ploy and the couple merely wanted to avoid paying their penalties.

They claimed the couple made attempts to avoid paying restitution, and they stated that Walter Forbes sold his wife Caren their $6 million home for just $10 in 1999.

Both attorneys representing the estranged couple deny the allegations that their clients made any attempts to avoid paying restitution.

The Federal Prosecution was recently allowed to be a third party involved in the divorce proceedings.

Judge Howard Owens issued a recent ruling that made Caren Forbes transfer ownership of their homes in Connecticut and Wisconsin back to her ex-husband, as well as half of the jewelry and art collection.

Both Cendant and the government will regain $3.3 billion owed to them.

Caren was also ordered to transfer 14 acres of land back to Walter?s name.

In the divorce decree, Caren was able to keep a couple of condos, a golf membership, and half of their art and jewelry collection. The other half will be sold to help settle the restitution.

Full post as published by The Divorce Blog on January 07, 2010 (boomark / email).