Jaffrey v. Bear

The plaintiff's allege that in October, 1881, defendants’ firm became indebted to them in the sum of 83,206.53, and that in November of the same year it made an assignment giving preferences to creditors, or alleged creditors, other than plaintiff's, to the amount of $75,000; that upon their own investigation and representations of defendants to the effect that the debts secured in the deed of trust were bona fide, they compromised at 25 cents on the dollar; that they have since discovered a considerable part of the amount so secured to have been wholly fraudulent, and made up of fictitious…