United States v. Adolph Kaplan, Celina Kaplan and Donald Kaplan

TUTTLE, Circuit Judge.

This is an appeal by the United States from the district court’s adverse judgment in its suit to set aside an alleged fraudulent conveyance. The principal questions presented are: (1) whether the United States had standing to sue as a judgment creditor; and (2) whether the district court erred in finding that an oral trust existed in favor of the transferee, which made legal the transfer to him without consideration. We answer both questions in the affirmative and reverse the judgment.

In February 1952, the Government filed a civil action, United States v. American…