ABI Blog Exchange

The data breach stories just don't seem to stop. (And why would they?). The latest (I think) is about a massive and sophisticated multi-million dollar hacking of several banks.  If you read down through the story, one of the things the hackers did was manipulate the balances of real accounts.  They'd change a real $1,000 balance to $10,000 and then have $9,000 wired to an account at another institution.   But why take out only $9,000?  The hackers were being nice, I suppose, in that they didn't steal any actual depositor's funds (as far as we know). And that was also probably smart, because if they zeroed out an account, there might be a bounced transaction that would alert the consumer and then the bank to the theft.  But I don't know that we can count on future hackers being so polite, considerate, or careful. Indeed, they might actually want to create havoc by messing with account balances.  

Read More from: Credit Slips

2 weeks 1 day ago
Credit Slips contributor Pamela Foohey has just posted her most recent work in her series of articles on churches in bankruptcy. I have been a big fan of this research project since Pamela was a fellow at the University of Illinois. She tells us not only about bankruptcy but also about the ways in which these churches look like most any small business. Most impressively, the work builds on existing literature on how people come to law to solve their problems and expands that literature into a new and nonobvious setting, suggesting this literature may have deep explanatory power to help us understand more about how people perceive and use law. It is exactly what we need more of in the law reviews -- scholarship using rigorous social science to help us understand what actually happens in the legal system.

Read More from: Credit Slips

2 weeks 1 day ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week.

Read More from: BankThink

2 weeks 2 days ago
It may only be Galentine’s Day as we post this, but given that V-Day is imminent, The Bachelor is in full-swing, and Fifty Shades of Gray just came out on the big screen, we decided to find some reasonable nexus between bankruptcy, romance, and love. In this year’s edition, we learn that all bets are off when former lovers end up in court. In Morales v. Giddens (In re Giddens), the plaintiff, Marta Morales, brought a complaint against her ex-husband, Christopher Giddens, seeking a finding that Giddens’ various debts to her were nondischargeable pursuant to various subsections of section 523 of the Bankruptcy Code. The bankruptcy court’s decision includes a full recitation of the sordid details of the dissolution of Giddens’ and Morales’ relationship. In brief, in connection with their divorce, Giddens agreed to turn over to Morales a series of shared items, including cars, flat screen televisions, furniture, and cash. After Giddens continued to fail to satisfy his obligations under the Judgment of Dissolution of Marriage, he met a loan officer named Agnieszka Materna. Materna and Giddens dated for some time, and Materna eventually agreed to invest $20,000 with Giddens for property that Giddens intended to “flip” for a profit. The $20,000 was never repaid.
2 weeks 2 days ago
There is no bigger shopping season than the time between Thanksgiving and New Year’s Eve. The Main Street marketing firms are getting you to purchase as early as Thanksgiving, all the way through Christmas and even after Christmas until the first of the year. Many Americans make those purchases on credit. Usually the first credit+ Read More The post Has Your Overspending At Christmas Come Back To Bite You? appeared first on David M. Siegel.
2 weeks 2 days ago
In Episode 23 of Accredited Investor Markets Radio, host Chris Cahill is joined by Jeffrey Lampe, Principal at Hopewell Ventures, for an in-depth discussion of early stage investing and venture capital rounds. Join them to learn about what backing a VC venture entails, what ‘items’ might be on a venture capitalist’s wish list (e.g. guaranteed Board seats), what to watch out for, when it may be a better investment strategy for a VC to borrow and what risks may still be present after the VC rounds have been completed.   You can find out more about Hopewell Ventures and Jeffrey Lampe here.   Or you can find him here: LinkedIn   About Jeffrey Lampe    
2 weeks 2 days ago
A Utah gun manufacturer, locked in a three-year legal battle with convicted felon Ralph Merrill, has filed for bankruptcy. Vector Arms Corp.—the “source for the best AK47 and *UZI’s on the market”—faces big legal bills in a dispute over whether Mr. Merrill sold the company’s gun-making equipment and inventory to current owner and president Jason Maughn in 2011. That sale came after Mr. Merrill lost his firearms manufacturing license in an illegal scheme to use China-made bullets to fill a $298 million ammunition order for Afghanistan Security Forces. None of that ammunition could come from China, per the 2006 U.S. Army contract’s rules. When Mr. Merrill and others realized that an Albanian dealer was sending boxes of ammo it got from China in the 1960s and 1970s, Mr. Merrill instructed handlers by email on “how to remove Chinese markings from containers,” according to a federal indictment. Mr. Merrill pleaded not guilty and unsuccessfully appealed his conviction. He has blamed his ex-lawyers and maintained his innocence in recent court papers.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
A Utah gun manufacturer, locked in a three-year legal battle with convicted felon Ralph Merrill, has filed for bankruptcy. Vector Arms Corp.—the “source for the best AK47 and *UZI’s on the market”—faces big legal bills in a dispute over whether Mr. Merrill sold the company’s gun-making equipment and inventory to current owner and president Jason Maughn in 2011. That sale came after Mr. Merrill lost his firearms manufacturing license in an illegal scheme to use China-made bullets to fill a $298 million ammunition order for Afghanistan Security Forces. None of that ammunition could come from China, per the 2006 U.S. Army contract’s rules. When Mr. Merrill and others realized that an Albanian dealer was sending boxes of ammo it got from China in the 1960s and 1970s, Mr. Merrill instructed handlers by email on “how to remove Chinese markings from containers,” according to a federal indictment. Mr. Merrill pleaded not guilty and unsuccessfully appealed his conviction. He has blamed his ex-lawyers and maintained his innocence in recent court papers.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
A Utah gun manufacturer, locked in a three-year legal battle with convicted felon Ralph Merrill, has filed for bankruptcy. Vector Arms Corp.—the “source for the best AK47 and *UZI’s on the market”—faces big legal bills in a dispute over whether Mr. Merrill sold the company’s gun-making equipment and inventory to current owner and president Jason Maughn in 2011. That sale came after Mr. Merrill lost his firearms manufacturing license in an illegal scheme to use China-made bullets to fill a $298 million ammunition order for Afghanistan Security Forces. None of that ammunition could come from China, per the 2006 U.S. Army contract’s rules. When Mr. Merrill and others realized that an Albanian dealer was sending boxes of ammo it got from China in the 1960s and 1970s, Mr. Merrill instructed handlers by email on “how to remove Chinese markings from containers,” according to a federal indictment. Mr. Merrill pleaded not guilty and unsuccessfully appealed his conviction. He has blamed his ex-lawyers and maintained his innocence in recent court papers.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
The family of a man brutally murdered by a former friend at a Caesars-owned property in 2009 wants a judge to lift the bankruptcy shield that protects Caesars Entertainment Operating Corp. from lawsuits during its Chapter 11 case so the family can go after the casino giant’s insurance policies. In a Thursday filing with U.S. Bankruptcy Court in Chicago, the family of Bradley Flamm said a Nevada wrongful death trial that originally named Caesars and several related entities should start April 20, as currently scheduled. The family says it needs Judge A. Benjamin Goldgar, the Chicago judge overseeing Caesars’ bankruptcy case, to grant an exception to the bankruptcy code’s “automatic stay” provision so the case can go on. The trial outcome could also determine what claims the family might file against Caesars in the bankruptcy case. “Allowing the plaintiffs to proceed with litigating the wrongful death action is the only way to determine both the propriety and value of the Flamms claims against the debtors,” lawyers for the Flamm family said in the filing. While the Flamms originally dismissed their charges against Caesars entities in the Nevada suit,the family later re-added Caesars and still wants the right to go after the company’s insurance policies.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
The family of a man brutally murdered by a former friend at a Caesars-owned property in 2009 wants a judge to lift the bankruptcy shield that protects Caesars Entertainment Operating Corp. from lawsuits during its Chapter 11 case so the family can go after the casino giant’s insurance policies. In a Thursday filing with U.S. Bankruptcy Court in Chicago, the family of Bradley Flamm said a Nevada wrongful death trial that originally named Caesars and several related entities should start April 20, as currently scheduled. The family says it needs Judge A. Benjamin Goldgar, the Chicago judge overseeing Caesars’ bankruptcy case, to grant an exception to the bankruptcy code’s “automatic stay” provision so the case can go on. The trial outcome could also determine what claims the family might file against Caesars in the bankruptcy case. “Allowing the plaintiffs to proceed with litigating the wrongful death action is the only way to determine both the propriety and value of the Flamms claims against the debtors,” lawyers for the Flamm family said in the filing. While the Flamms originally dismissed their charges against Caesars entities in the Nevada suit,the family later re-added Caesars and still wants the right to go after the company’s insurance policies.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
The family of a man brutally murdered by a former friend at a Caesars-owned property in 2009 wants a judge to lift the bankruptcy shield that protects Caesars Entertainment Operating Corp. from lawsuits during its Chapter 11 case so the family can go after the casino giant’s insurance policies. In a Thursday filing with U.S. Bankruptcy Court in Chicago, the family of Bradley Flamm said a Nevada wrongful death trial that originally named Caesars and several related entities should start April 20, as currently scheduled. The family says it needs Judge A. Benjamin Goldgar, the Chicago judge overseeing Caesars’ bankruptcy case, to grant an exception to the bankruptcy code’s “automatic stay” provision so the case can go on. The trial outcome could also determine what claims the family might file against Caesars in the bankruptcy case. “Allowing the plaintiffs to proceed with litigating the wrongful death action is the only way to determine both the propriety and value of the Flamms claims against the debtors,” lawyers for the Flamm family said in the filing. While the Flamms have dismissed their charges against Caesars entities in the Nevada suit, the family still wants the right to go after Caesars’ insurance policies.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
This week on The Broke and the Beautiful, David Cassidy filed for bankruptcy—but don’t worry, we (still) think we love him. Also, music festival Country Explosion filed for bankruptcy, and BottleRock’s original producers sought $3 million from an early investor.
Seventies heartthob David Cassidy leaves town court in Schodack, N.Y., on Wednesday, Sept. 3, 2014. Mr. Cassidy pleaded guilty to a misdemeanor charge of driving while intoxicated in upstate New York.
Patrick Dodson/Associated Press
David Cassidy, even though you’ve filed for bankruptcy, don’t worry—we think we love you. The actor and singer, who is best known for his starring role in the sitcom “The Patridge Family,” on Wednesday filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Fort Lauderdale, Fla. In his bankruptcy filing, Mr. Cassidy reported assets and debts each between $1 million and $10 million. Among his largest unsecured creditors are Wells Fargo, owed nearly $300,000, and a South Florida law firm owed $103,000.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
This week on The Broke and the Beautiful, David Cassidy filed for bankruptcy—but don’t worry, we (still) think we love him. Also, music festival Country Explosion filed for bankruptcy, and BottleRock’s original producers sought $3 million from an early investor.
Seventies heartthob David Cassidy leaves town court in Schodack, N.Y., on Wednesday, Sept. 3, 2014. Mr. Cassidy pleaded guilty to a misdemeanor charge of driving while intoxicated in upstate New York.
Patrick Dodson/Associated Press
David Cassidy, even though you’ve filed for bankruptcy, don’t worry—we think we love you. The actor and singer, who is best known for his starring role in the sitcom “The Patridge Family,” on Wednesday filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Fort Lauderdale, Fla. In his bankruptcy filing, Mr. Cassidy reported assets and debts each between $1 million and $10 million. Among his largest unsecured creditors are Wells Fargo, owed nearly $300,000, and a South Florida law firm owed $103,000.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
This week on The Broke and the Beautiful, David Cassidy filed for bankruptcy—but don’t worry, we (still) think we love him. Also, music festival Country Explosion filed for bankruptcy, and BottleRock’s original producers sought $3 million from an early investor.
Seventies heartthob David Cassidy leaves town court in Schodack, N.Y., on Wednesday, Sept. 3, 2014. Mr. Cassidy pleaded guilty to a misdemeanor charge of driving while intoxicated in upstate New York.
Patrick Dodson/Associated Press
David Cassidy, even though you’ve filed for bankruptcy, don’t worry—we think we love you. The actor and singer, who is best known for his starring role in the sitcom “The Patridge Family,” on Wednesday filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Fort Lauderdale, Fla. In his bankruptcy filing, Mr. Cassidy reported assets and debts each between $1 million and $10 million. Among his largest unsecured creditors are Wells Fargo, owed nearly $300,000, and a South Florida law firm owed $103,000.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
Sears Methodist Retirement Systems Files for Chapter 11 Bankruptcy Protection | June 10, 2014 Sears Methodist Retirement System, Inc. and 11 affiliates filed for protection under Chapter 11 of the United States Bankruptcy Code on June 10, 2014 In the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, under Case No. 14-32821-SGJ-11. The case is currently pending before the Honorable Stacey G. Jernigan. The debtors in these chapter 11 cases, along with the last four (4) digits of their taxpayer identification numbers, are: Sears Methodist Retirement System, Inc. (6330), Canyons Senior Living, L.P. (8545), Odessa Methodist Housing, Inc. (9569), Sears Brazos Retirement Corporation (8053), Sears Caprock Retirement Corporation (9581), Sears Methodist Centers, Inc. (4917), Sears Methodist Foundation (2545), Sears Panhandle Retirement Corporation (3233), Sears Permian Retirement Corporation (7608), Sears Plains Retirement Corporation (8233), Sears Tyler Methodist Retirement Corporation (0571) and Senior Dimensions, Inc. (4016). The mailing address of each of the debtors, solely for purposes of notices and communications, is 2100 Ross Avenue 21st Floor, c/o Paul Rundell, Dallas, Texas 75201 Paul B. Rundell is the Chief Restructuring Officer of Sears Methodist Retirement System, Inc. (“SMRS”), which controls, directly or indirectly, as applicable, Canyons Senior Living, L.P. (“CSL”), Odessa Methodist Housing, Inc.

Read More from: Richard G. Grant, P.C.

2 weeks 2 days ago
John Rogers:
A good post by Kentuckiana Bankruptcy Opinions on a recent opinion of the EDKY Bankruptcy Court on the dischargeability of Kentucky Income taxes … takes you through the requirement for finding that the taxes are dischargeable !
Originally posted on Kentuckiana Bankruptcy Opinions: (Bankr. E.D. Ky. Feb. 12, 2015) The bankruptcy court grants the debtor’s motion for summary judgment, declaring taxes owed to the department of revenue dischargeable. The court finds that the debtor’s tax obligations did not fit within the framework of 11 U.S.C. § 523(a)(1) and thus were dischargeable. The opinion provides a succinct outline for discharging certain tax obligations. Opinion below. 2015-02-12 – cunningham v ky dept of revenue Author: Matt Lindblom View original
2 weeks 2 days ago
Associated Press
Tuesday in Manhattan, General Motors Co.  and so-called “economic victims” of the auto company’s ignition-switch defect will spar in court over whether GM should be on the hook for their monetary losses. The new GM says it discarded its lawsuit liabilities when Judge Robert Gerber approved the sale of the company to the U.S. government in 2009. However, the economic-loss victims argue that General Motors ought to compensate them for things like loss of car value—in spite of the bankruptcy release—because they weren’t informed of the problem by GM before the bankruptcy and weren’t given the opportunity to participate in the case. These lawsuits are separate from those about injuries or deaths linked to the ignition-switch defect. More than 30 people have died because of the issue. GM has set aside at least $400 million to compensate those injured or the families of those killed in crashes related to the ignition switch problem.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
Associated Press
Tuesday in Manhattan, General Motors Co.  and so-called “economic victims” of the auto company’s ignition-switch defect will spar in court over whether GM should be on the hook for their monetary losses. The new GM says it discarded its lawsuit liabilities when Judge Robert Gerber approved the sale of the company to the U.S. government in 2009. However, the economic-loss victims argue that General Motors ought to compensate them for things like loss of car value—in spite of the bankruptcy release—because they weren’t informed of the problem by GM before the bankruptcy and weren’t given the opportunity to participate in the case. These lawsuits are separate from those about injuries or deaths linked to the ignition-switch defect. More than 30 people have died because of the issue. GM has set aside at least $400 million to compensate those injured or the families of those killed in crashes related to the ignition switch problem.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
Associated Press
Tuesday in Manhattan, General Motors Co.  and so-called “economic victims” of the auto company’s ignition-switch defect will spar in court over whether GM should be on the hook for their monetary losses. The new GM says it discarded its lawsuit liabilities when Judge Robert Gerber approved the sale of the company to the U.S. government in 2009. However, the economic-loss victims argue that General Motors ought to compensate them for things like loss of car value—in spite of the bankruptcy release—because they weren’t informed of the problem by GM before the bankruptcy and weren’t given the opportunity to participate in the case. These lawsuits are separate from those about injuries or deaths linked to the ignition-switch defect. More than 30 people have died because of the issue. GM has set aside at least $400 million to compensate those injured or the families of those killed in crashes related to the ignition switch problem.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago

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