Wife tricked into signing over house used as loan security

A husband exploited the trust and confidence of his wife of 14 years by tricking her into handing him control of the family home, which he used as security on a friend's multimillion-dollar debt, a judge ruled yesterday.

Deputy Judge Edward Woolley dismissed a claim for just under $11.4 million by Well Kent Finance Ltd and Yick Chiao Development Co Ltd after he found that Marga Wulfgram, a senior manager at Deutsche Bank, did not know her home had been signed over as security for the debt they were owed.

Ms Wulfgram had paid for the family home, in Cloud View Road, in the hills above North Point, the Court of First Instance was told.

The loan deal came about after Ms Wulfgram's husband, Ip Wai-kin, the owner of motor trade company High Tech Motors Co Ltd, moved into the same business premises as Yue Fung Motors Co director Chan Wai-man in September 1995.

Mr Ip agreed to arrange for the family home to be used as security on a loan for Mr Chan from Well Kent and Yick Chiao.

Ms Wulfgram had already used the home to secure banking facilities for her husband's motor company, the court heard.

On December 13, 1995, she signed control of the home, under a general power of attorney, to her husband because she was leaving the country for three weeks.