- 11 U.S.C.
Nisselson v. Empyrean Inv. Fund LP (In re MarketXT Holdings Corp.)
Mar
12
2010
Ruling
Transfer by debtor of proceeds of stock sale to investment fund avoided as fraudulent.
Procedural posture
Trustee brought an adversary proceeding against defendant investment fund alleging that a transfer of the proceeds of a sale of stock held by a bankruptcy debtor to the fund constituted an intentionally and constructively fraudulent transfer under bankruptcy law and state law.
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- 11 U.S.C.
Altman v. Southland Homes Corp. (In re Kronk)
Feb
08
2010
Ruling
Transferee's knowledge of debtor's financial difficulty was not sufficient evidence to avoid transfer as fraudulent.
Procedural posture
Chapter 7 trustee filed a complaint to avoid the transfer of property from the debtors to defendant transferee pursuant to 11 U.S.C.S. § 548(a)(1)(B) and to recover the property pursuant to 11 U.S.C.S. § 550.
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- 11 U.S.C.
Feldman v. Chase Home Finance (In re Image Masters Inc.)
Dec
17
2009
Ruling
Transfers by debtor that operated Ponzi scheme to mortgage lender that was ignorant of scheme were not avoidable on grounds of actual or constructive fraud.
Procedural posture
Chapter 7 trustee brought claims to avoid over $ 23 million of transfers made to defendants, residential mortgage lenders. The transfers were underlying mortgage payments made by the debtors, the facilitators of a multi-million dollar Ponzi scheme. The lenders moved to dismiss all counts of the complaint for failure to join parties under Fed. R. Civ. P. 12(b)(7) and 19, and the avoidance claims under Fed. R. Civ. P. 12(b)(6).
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:
- 11 U.S.C.
Farinash v. Bensusan (In re Prebal Jeep Inc.)
Nov
30
2009
Ruling
Transfer that amounted to exchange of reasonably equivalent value was not avoidable.
Procedural posture
This adversary proceeding was initiated by plaintiff chapter 7 Trustee to recover allegedly fraudulent and preferential transfers made by debtor auto dealership to defendant investors. The proceeding was before the court on cross-motions for partial summary judgment.
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Court
:
- 11 U.S.C.
Mitrano v. Melka
Nov
05
2009
Ruling
Bankruptcy court properly dismissed adversary proceeding and denied motions for reconsideration.
Procedural posture
Appellant debtor filed a notice of appeal from an order entered by the Bankruptcy Court for the Eastern District of Virginia dismissing an adversary proceeding and denying the debtor's first motion for reconsideration. The debtor also appealed the bankruptcy court's denial of his second motion for reconsideration and his motion to amend the complaint or transfer proceedings.
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:
- 11 U.S.C.
Harden v. Nemchak (In re Wingen)
Oct
16
2009
Ruling
Transfer of beach home to debtor's wife for less than 60 percent of value was avoidable.
Procedural posture
Debtor filed a voluntary petition in bankruptcy under chapter 7. Plaintiff, Trustee of the debtor's bankruptcy estate, filed an adversary proceeding under 11 U.S.C.S. § 548 seeking to avoid and recover the debtor's transfer of a one-half interest in a beach house to defendant, his wife. The Trustee filed a motion for summary judgment on this adversary proceeding.
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:
- 11 U.S.C.
Schaefer v. First National Bank
Oct
15
2009
Ruling
Constructively fraudulent mortgage avoided.
Procedural posture
Plaintiff chapter 11 debtors filed an adversary proceeding against defendants, a bank and a committee of unsecured creditors, seeking a judgment determining the validity and priority of liens against real property they owned. The committee filed a crossclaim against the bank, seeking to avoid a mortgage under 11 U.S.C.S. § 548(a)(1)(B), which the debtors gave the bank.
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:
- 11 U.S.C.
Pereira v. Grecolas Ltd. (In re Saba Enters.)
Sep
18
2009
Ruling
Fraudulent transfer proceeding dismissed as to businesses trustee failed to show were liable.
Procedural posture
Debtor holding company filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's bankruptcy estate. The trustee filed an adversary proceeding against defendants, an individual and various businesses, claiming, inter alia, that the individual was responsible for the fraudulent transfer of assets that belonged to the debtor to other businesses he owned. Defendants filed a motion to dismiss.
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Court
:
- 11 U.S.C.
Hutson v. United States Dept of the Army (In re Natural Gas Distribs. Inc.)
Aug
25
2009
Ruling
Transfers to Army by debtor natural gas distributor, except for spot purchases, were made pursuant to "swap agreements" and not subject to avoidance.
Procedural posture
Plaintiff chapter 11 trustee filed an adversary proceeding against defendant United States of America, Department of the Army, seeking a determination that contracts which a chapter 11 debtor, a natural gas distributor, concluded with the Army were fraudulent transfers and preferential transfers that could be avoided under 11 U.S.C.S. §§ 548(a)(1)(A) and (B), 547(b), and 550(a)(1). The parties filed cross-motions for summary judgment.
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:
- 11 U.S.C.
Rupp v. Ayres (In re Fabbro)
Jul
29
2009
Ruling
Transfers to real estate agents who misrepresented nature of services to debtor were fraudulent.
Procedural posture
A debtor filed a petition under chapter 7. Plaintiff chapter 7 trustee filed causes of action against defendants, a real estate agent, his associate, a real estate company, a transferee, and other defendants, for common law fraud, fraudulent transfer under 11 U.S.C.S. § 548, fraudulent transfer under Utah Code Ann. § 25-6-6 of the Utah Uniform Fraudulent Transfer Act (UFTA), negligence, civil conspiracy, breach of contract, and punitive damages.
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