Stanziale v. Sutton (In re Dwek)
Jan
20
2011
Ruling
Transfer of "profits" by debtor Ponzi scheme operator avoided as fraudulent given absence of non-fraudulent basis for transfer.
Procedural posture
Trustee sought summary judgment against defendant transferees on claims that debtor's wire transfers to them totaling $1.369 million, which included $169,999 in "profits," were voidable as fraudulent conveyances per 11 U.S.C.S. § 548. Defendants opposed the motion, claiming inter alia that they had given value to debtor by transferring $1.2 million to him for the purpose of investment and thus had a lien within the meaning of § 548(c).
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Court
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