- 11 U.S.C.
Barnard v. Albert (In re Janitorial Close-Out City Corp.)
Feb
08
2013
Ruling
Trustee could recover transfers made by debtor during operation of Ponzi scheme.
Procedural posture
Plaintiff chapter 7 Trustee sought to recover transfers as (1) unjust enrichment, (2) transfers made with actual intent to hinder, delay, or defraud debtors' creditors pursuant to 11 U.S.C.S. § 548(a)(1)(A) and N.Y. Debt. & Cred. Law § 276 (2012) ("actual intent fraud"), and (3) constructively fraudulent transfers. In addition, the Trustee sought to recover attorney's fees. Defendant was the transferee. The Trustee moved for summary judgment.
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- 11 U.S.C.
Meiburger v. LNDP&G Ultra Trust (In re Woodworth)
Feb
06
2013
Ruling
Debtor's transfer of funds originally transferred into brokerage account by debtor's mother to trust account was avoidable.
Procedural posture
Chapter 7 trustee filed a complaint against a trust and its trustee seeking to avoid a transfer of funds to the trust by the debtor pursuant to 11 U.S.C.S. § 548(a)(1)(A) and (a)(1)(B) and to recover the value of the transfer under 11 U.S.C.S. § 550(a).
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- 11 U.S.C.
Ward v. Jenkins (In re Jenkins)
Dec
12
2012
Ruling
Transfer to nondebtor spouse was intended to hinder, delay or defraud creditors and could be avoided.
Procedural posture
The chapter 7 trustee brought an adversary proceeding against the non- debtor wife of the debtor, asserting that she was liable as an initial transferee of proceeds of various legal claims litigated by the debtor, pursuant to 11 U.S.C.S. §§ 544(b), 548(a), 550(a)(1), N.C. Gen. Stat. §§ 39- 23.4(a)(2) and 39-23.5(a). The trustee moved for partial summary judgment on the claims.
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- 11 U.S.C.
Krudy v. Hoetmer (In re Hoetmer)
Sep
26
2012
Ruling
Prepetition 401(k) loan repayment "reborrowed" just after petition date and converted to non- exempt property was fraudulent and avoidable.
Procedural posture
Plaintiff trustee alleged that a 401(k) loan repayment was a fraudulent transfer and sought to avoid and recover it from defendant debtor for the estate under 11 U.S.C.S. §§ 548(a)(1)(A), 550. The matter was pending judgment following a trial.
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- 11 U.S.C.
Zazzali v. AFA Fin. Group LLC
Aug
28
2012
Ruling
Avoidance proceedings dismissed except to the extent that good faith/value defense possibly applied.
Procedural posture
Plaintiff Trustee brought a proceeding against defendants (some of "Movants"). Count One was pursuant to 11 U.S.C.S. § 548(a)(1)(A). Counts Two and Three were pursuant to 11 U.S.C.S. § 544 and Idaho Code Ann. §§ 55-906, 55-913. Count Four alleged unjust enrichment. Count Five was pursuant to 11 U.S.C.S. § 547. Count Six was pursuant to 11 U.S.C.S. § 549. Count Seven sought claim disallowance under 11 U.S.C.S. § 502(d). Movants sought dismissal.
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- 11 U.S.C.
In re Sentinel Mgmt. Group
Aug
09
2012
Ruling
Judgment holding that debtor's use of customer assets to finance loan was not fraudulent affirmed.
Procedural posture
Plaintiff trustee filed an adversary proceeding alleging that the debtor fraudulently used customer assets to finance a loan to cover its house trading activity and that defendant bank knew about it. There were claims of fraudulent transfer, preferential transfer, equitable subordination, and invalidation of the lien. The U.S. District Court for the Northern District of Illinois, Eastern Division, rejected the claims. The trustee appealed.
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Judge or Jurisdiction information not available
- 11 U.S.C.
Stoebner v. Ritchie Capital Mgmt. LLC (In re Polaroid Corp.)
Apr
30
2012
Ruling
Grant of security interest in property made only to delay, hinder or defraud could be avoided.
Procedural posture
Plaintiff chapter 7 trustee's adversary proceeding sought to avoid, under 11 U.S.C. §§ 548, 544, the grant of security interests to defendants, entities that claimed to hold an enforceable security interest in certain aspects of debtor's intellectual property, specifically certain trademarks and associated rights. The trustee sought other relief, alternatively or additionally. The trustee moved for partial summary judgment.
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- 11 U.S.C.
Pryor v. Tiffen (In re TC Liquidation LLC)
Dec
06
2011
Ruling
Trustee entitled to avoid payments made by debtor LLC to individuals to pay taxes owed on debtor's profits.
Procedural posture
Debtor LLC, an "S" corporation, declared chapter 11 bankruptcy in February 2003 and remained in chapter 11 bankruptcy until June of 2004, when the case was converted to one under chapter 7. A trustee who was appointed to administer the debtor's chapter 7 bankruptcy estate learned that individuals who purchased a company from their parents borrowed money so they could acquire the company and other businesses and received salary increases and dividend payments from the debtor which allowed them to repay the loans and to pay taxes they owed on profits the debtor made, and he filed adversary proceedings against those individuals, seeking a determination that he could recover those payments. The court found that the trustee was entitled under 11 U.S.C.S. § 548(a)(1)(A) to recover payments defendants received so they could pay taxes they owed on profits the company made, but was not entitled to recover money defendants received as salary increases or dividends which they use to repay debts they owed to their parents and other lenders. The debtor did not derive any value from dividends it paid defendants so they could pay their taxes.
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- 11 U.S.C.
Farmer v. Racsko (In re Racsko)
Sep
14
2011
Ruling
Transfer to debtor's former spouse for less than equivalent value was constructively fraudulent and avoidable.
Procedural posture
Adversary plaintiff, the chapter 7 trustee, brought an action against defendant debtor, averring that the debtor fraudulently transferred funds in the amount of $79,973.27 to a trust of which she was trustee, and seeking to avoid and recover the transfer pursuant to 11 U.S.C.S. §§ 548(a), 544(b)(1), and 550(a), and in conjunction with Tenn. Code Ann. § 66-3-305 (2004).
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- 11 U.S.C.
Springel v. Prosser (In re Innovative Commun. Corp.)
Aug
05
2011
Ruling
Trustee could recover fraudulent and constructively fraudulent transfers from debtor's president, chairman and CEO to adult children.
Procedural posture
Plaintiff, a Chapter 11 trustee, sought to recover pre-petition fraudulent transfers and unauthorized post-petition transfers from defendant transferees, who were the adult children of the debtors' board president, chairman, and chief executive officer (CEO).
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