DECISION & ORDER INTRODUCTION Plaintiffs Consumer Financial Protection Bureau (“the Bureau”) and People of the State of New York (“the State”) bring this action to unwind allegedly fraudulent conveyances carried out by a judgment debtor. See ECF No. 1. Defendants are Douglas MacKinnon (the judgment debtor), Amy MacKinnon (Douglas’s wife), Mary-Kate MacKinnon (Douglas’s daughter), and Matthew MacKinnon (Douglas’s brother).1 Defendants have moved to dismiss the complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). ECF Nos. 19, 20, 21. For the reasons that follow, Defendants’ motions are DENIED. LEGAL STANDARD A complaint will survive a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) when it states a plausible claim for relief. Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). A claim for relief is plausible when the plaintiff pleads sufficient facts that allow the Court to draw the reasonable inference that the defendant is liable for the alleged misconduct. Id. at 678. In considering the plausibility of a claim, the Court must accept factual allegations as true and draw all reasonable inferences in the plaintiff’s favor. Faber v. Metro. Life Ins. Co., 648 F.3d 98, 104 (2d Cir. 2011). At the same time, the Court is not required to accord “[l]egal conclusions, deductions, or opinions couched as factual allegations…a presumption of truthfulness.” In re NYSE Specialists Secs. Litig., 503 F.3d 89, 95 (2d Cir. 2007). A court “is generally limited to the [complaint] when considering” a motion to dismiss. Magnotta v. Putnam Cty. Sheriff, No. 13-CV-2752, 2014 WL 705281, at *3 (S.D.N.Y. Feb. 24, 2014)). When alleging fraud, “a party must state with particularity the circumstances constituting fraud or mistake,” though intent “may be alleged generally.” Fed. R. Civ. P. 9(b); see also U.S. ex rel. Kester v. Novartis Pharms. Corp., 23 F. Supp. 3d 242, 252 (S.D.N.Y. 2014) (“Rule 9(b) requires that a plaintiff set forth the who, what, when, where and how of the alleged fraud.”). BACKGROUND The following facts are taken from the complaint, unless otherwise noted. Plaintiffs allege that Douglas was, until recently, the “head of a debt-collection enterprise who made millions of dollars by inflating the balances of debts owed and encouraging [his] collectors…to use illegal tactics.” ECF No. 1 18. In March 2014, Douglas learned that one of his debt-collection companies was under investigation by the Bureau for its collection activities. Id. 2. As 2014 progressed, the Bureau and the State began investigating other companies associated with Douglas. See id.
3, 34. At the time the investigation began, Douglas and Amy owned, as tenants by the entirety, a property located in East Amherst, New York. Id. 22. That property included a “six-bedroom, seven-bathroom single-family home with a current assessed value of approximately $1,600,000.” Id. 25. On April 22, 2015, Douglas transferred his interest in the East Amherst property to Amy and Mary-Kate. The transfer was effectuated by quitclaim deed for one dollar in consideration. Id. 23; see also ECF No. 1-3 at 3. On May 12, 2015, Amy granted a $900,000 mortgage to Matthew, who maintained a “close relationship” with the other defendants. ECF No. 1 32. Both the transfer and the mortgage were recorded with the Erie County Clerk on May 13, 2015. Id.
