Hughes v. Ellenbogen

Order of December 17, 1938, granting plaintiff’s motion to strike out the second and third separate defenses, reversed on the law, with ten dollars costs and disbursements, and motion denied, with ten dollars costs. Section 353-a of the General Business *1104Law contemplates that as to property derived by a defendant by means of fraudulent practices, and reduced to possession of a receiver, the claimants thereto shall be entitled to proportionate distribution. The scope of the receivership, however, is limited to such property, as distinguished from general assets. (Goldberg v. Weihman, 243 App.…