Deal of the Decade? Lehman's Fuld Gave $13.75 Mil Estate to Wife for $100

January 26, 2009— -- Less than two months after the investment banking firm he led collapsed in the largest bankruptcy in U.S. history, Lehman Brothers CEO and Chairman Richard Fuld transferred his $13.75 million ocean front estate in Jupiter Island, FL to his wife for just one Benjamin Franklin bill, Florida real estate records reveal.

The move is garnering attention for what might be Fuld's attempt to avoid creditors as he could face civil lawsuits in the future.

It sounds like Fuld is "trying to save as many assets as he can," said Palm Beach attorney Jeffrey Zane, who does not represent Fuld. The move, he added, is basically an interfamily transfer that was necessary because Fuld, as a non-resident of Florida, was not safeguarded by the state's homestead property laws that can protect a family home from creditors.

After failing to find a financial savior to save it from collapse - which was a partial consequence of its heavy involvement in sub-prime mortgage investments - Lehman Brothers filed for bankruptcy Sept. 15, 2008.

The transfer of the lavish home to Kathleen Fuld took place Nov. 10, 2008, according to public records, which came just over one month after Fuld faced scrutiny during a heated Congressional hearing.

The couple purchased the more than three-acre estate in 2004. Cityfile.com first reported the recent transfer from Fuld to his wife.

Florida attorney Eric S. Ruff told the New York Times that Fuld's transfer is "the oldest trick in the books." "It's common when you hear the feet of your creditor approaching to divest yourself," Ruff said.

Ruff also told the Times that the sale could be deemed fraudulent if Fuld's wife is determined to not have paid enough for the property, potentially paving the way for creditors who come wanting to collect.

Zane said that should any question arise surrounding the legitimacy of the transfer, the Fulds could argue the move was part of their overall estate planning and that the transfer date coincidentally "happened at the same time that [Fuld] was under so much glare or publicity."

Fuld did not immediately return a message left for him by ABCNews.com.