§ 548(a)

Hagan v. Goldstein (In re Goldstein)

Plaintiff, a chapter 7 trustee, filed a fraudulent conveyance proceeding against defendant, the wife of a debtor, to avoid and recover prepetition transfers. In support of her complaint, the trustee challenged the transfers as both constructively and actually fraudulent, but in her summary judgment motion, she advanced just a constructive fraud theory and only as to a portion of the amount in the complaint.
Ruling: 
Trustee could recover fraudulent transfers to debtor's spouse for which no reasonably equivalent value was given.
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Consumer case opionion summary, case decided on May 14,2010, LexisNexis #0810-095

Liberty Mut. Ins. Co. v. New York (In re Citron)

Adversary plaintiff, an insurer and the primary creditor of the husband and wife debtors, sought to avoid and recover a $ 75,000 criminal fine paid by debtor husband to defendant state as part of a plea agreement related to several felony counts of insurance fraud, and payments of $ 5000 and $ 9000 made by debtor wife as part of a plea agreement. The state asserted a complete defense based on contemporaneous exchange for new value.
Ruling: 
Payment by debtor as part of plea agreement was preferential and avoidable.
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Consumer case opionion summary, case decided on May 06,2010, LexisNexis #0710-091

TSIC Inc. v. Thalheimer (In re TSIC Inc.)

Debtor filed an adversary proceeding seeking to avoid a $ 6,055,000 severance payment made to a former director and chief executive officer (CEO). Debtor filed a motion for summary judgment requesting the court find that the payment was an avoidable fraudulent transfer pursuant to 11 U.S.C.S. § 548(a)(1)(B)(i), (ii)(IV). The CEO filed a cross-motion for summary judgment.
Ruling: 
Severance payment to former director and CEO during two-year lookback period was a transfer for less than equivalent value and avoidable.
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Commercial case opionion summary, case decided on April 28,2010, LexisNexis #0710-021

Pryor v. Fisher (In re Dimino)

Plaintiff, the chapter 7 trustee, brought an adversary proceeding seeking to recover two pre-petition transfers from the debtor to two defendants, transferees of funds in the aggregate amount of $ 55,000, transferred in satisfaction of mechanic's liens the transferees filed against the debtor's real property, which the trustee asserted were legally deficient.
Ruling: 
Transfers in satisfaction of mechanics' liens were made for full consideration and were not avoidable.
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Consumer case opionion summary, case decided on April 21,2010, LexisNexis #0710-055

Uecker & Assocs. v. Tenet Healthsystem Hosps. Inc. (In re West Contra Costa Healthcare Dist.)

Plaintiff, a trustee of a trust for the benefit of creditors under a confirmed plan, filed a complaint pursuant to 11 U.S.C.S. § 548(a)(1)(B) against defendant creditor to avoid and recover certain lease payments made prepetition by a chapter 9 debtor to the creditor and to object to the creditor's claim unless the payments were repaid. The creditor filed a motion for summary judgment, and the trustee filed a motion for partial summary judgment.
Ruling: 
Sublease payments by chapter 9 debtor were not avoidable absent proof of insolvency at time sublease was entered.
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Commercial case opionion summary, case decided on March 26,2010, LexisNexis #0610-127

Nisselson v. Empyrean Inv. Fund LP (In re MarketXT Holdings Corp.)

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.
Ruling: 
Transfer by debtor of proceeds of stock sale to investment fund avoided as fraudulent.
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Commercial case opionion summary, case decided on March 12,2010, LexisNexis #0510-033

Altman v. Southland Homes Corp. (In re Kronk)

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.
Ruling: 
Transferee's knowledge of debtor's financial difficulty was not sufficient evidence to avoid transfer as fraudulent.
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Consumer case opionion summary, case decided on February 08,2010, LexisNexis #0510-023

Feldman v. Chase Home Finance (In re Image Masters Inc.)

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).
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.
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Commercial case opionion summary, case decided on December 17,2009, LexisNexis #0210-062

Farinash v. Bensusan (In re Prebal Jeep Inc.)

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.
Ruling: 
Transfer that amounted to exchange of reasonably equivalent value was not avoidable.
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Commercial case opionion summary, case decided on November 30,2009, LexisNexis #0110-089

Mitrano v. Melka

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.
Ruling: 
Bankruptcy court properly dismissed adversary proceeding and denied motions for reconsideration.
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Consumer case opionion summary, case decided on November 05,2009, LexisNexis #1209-019

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