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Askenaizer v. Wyatt (In re BeaconVision Inc.)

Askenaizer v. Wyatt (In re BeaconVision Inc.)

Ruling
Corporate lender was initial transferee of funds disbursed out of escrow deposit intended as commitment fee for debtor's loan.
Procedural posture

Plaintiff, the chapter 7 trustee, filed a complaint against various defendants who were alleged to have received funds from a $ 200,000 deposit to an escrow account made by the debtor as an anticipated loan commitment fee for a $ 2 million loan that was never completed. The $200,000 was distributed. The primary issue was which defendant was the initial transferee of the deposit for purposes of transferee liability under 11 U.S.C.S. § 550(a).

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Commercial opinion summary, case decided on January 20, 2009 , LexisNexis #0309-068