§ 548(a)

McHale v. Boulder Capital LLC (In re 1031 Tax Group LLC)

The chapter 11 trustee brought an adversary complaint against defendant lenders to avoid loan payments made to the lenders by the former chief executive officer (CEO) of the debtors and his affiliates, as fraudulent transfers under 11 U.S.C.S. § 548(a). The trustee moved for seeks partial summary judgment. He alleged that approximately $29 million was misappropriated from the debtors and fraudulently conveyed to the lenders.
Ruling: 
Transfers made by debtors' CEO with intent to defraud were avoidable.
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Commercial case opionion summary, case decided on August 27,2010, LexisNexis #0910-089

Togut v. RBC Dain Correspondent Servs. (In re S.W. Bach & Co.)

Plaintiff, chapter 7 Trustee of debtor, a former broker-dealer, sought partial summary judgment under Fed. R. Civ. P. 56, made applicable by Fed. R. Bankr. P. 7056, against defendant, a broker-dealer (hereafter, the "broker-dealer"), on the Trustee's constructive fraudulent transfer claim under 11 U.S.C.S. § 548(a)(1)(B) (Count Nine). The broker-dealer in turn sought denial of partial summary judgment and a dismissal of Count Nine.
Ruling: 
Transfer by debtor's clearing agent of customer accounts to broker-dealer without consideration was a "transfer of an interest of the debtor in property" and a constructive fraudulent conveyance.
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Commercial case opionion summary, case decided on August 18,2010, LexisNexis #0910-055

Steed v. Morgan (In re Rivas)

Pursuant to 11 U.S.C.S. §§ 548, 549, and 550, plaintiff trustee filed a complaint seeking the avoidance and recovery of alleged fraudulent transfers and an unauthorized postpetition transfer made by the debtor to defendant, the woman with whom the debtor was romantically involved (girlfriend).
Ruling: 
Ponzi scheme operator's transfers to girlfriend within two years of petition date avoided as intended to defraud creditors.
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Commercial case opionion summary, case decided on June 03,2010, LexisNexis #0810-057

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

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