Commercial Fraud Committee


Post date: Friday, April 27, 2018

Editor's Note: Don is the Communications Manager for the Mediation Committee, and recipient of this year's Committee Leader of the Year for his work in 2017. We thank Don for his continued efforts and support!


Post date: Wednesday, January 10, 2018

Section 101(54) defines “transfer” to mean “each mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with[] (i) property; or (ii) an interest in property.”[1] But is a deposit or wire transfer into a debtor’s bank account a “transfer” within the meaning of § 101(54)?

Post date: Wednesday, January 10, 2018

Bankruptcy trustees have tested the limits of the § 546(e) safe harbor since its enactment. In case after case, the courts, with few exceptions, have expanded those limits — that is, perhaps, until now. On Monday, Nov. 6, 2017, the U.S. Supreme Court heard argument in the case of Merit Management Group LP v.

Post date: Monday, September 25, 2017

Section 727(b) of the Bankruptcy Code provides for the discharge of debts that arose prior to the petition date.

Post date: Monday, September 25, 2017

The U.S. Supreme Court has, for four decades, been rocking the boat [that’s Justice Blackmun’s metaphor] on bankruptcy court authority. First, they almost killed the Code, coming within one vote of declaring the entire Bankruptcy Code unconstitutional. Then, they limit and mess with it some more.

Post date: Monday, September 25, 2017
Photo of Abigail B. Willie, Career Law Clerk
Abigail B. Willie, Career Law Clerk

Section 523(a)(2)(B) provides that an individual debtor’s debt is not discharged to the extent the debt was obtained by use of a statement in writing that (1) is materially false, (2) is respecting the debtor’s financial condition, (3) is one on which the creditor reasonably relied and (4) was caused by the debtor to be made or published with intent to deceive. Recently, in Privitera v.

Post date: Wednesday, June 21, 2017

Commingling of funds frequently occurs in fraud cases and is notably common in Ponzi scheme cases. It occurs when funds belonging to one party are deposited into the same bank account as funds that belong to a different party. Because money is fungible, it is not possible to trace exactly which dollars belong to which party if they reside in the same bank account.

Post date: Wednesday, June 21, 2017

On May 15, 2017, the Supreme Court in Midland Funding, LLC v.

Post date: Wednesday, June 21, 2017

When the trustee of a bankrupt company sues to avoid allegedly fraudulent transfers, one threshold element that he or she must generally show is that the transfer left the debtor with “unreasonably small capital.” Recent appeals in the SemCrude and Adelphia bankruptcy cases demonstrate that this a tough showing to make.

Post date: Wednesday, June 21, 2017

Section 544(b)(1) of the Code enables a trustee to “avoid any transfer of an interest of the debtor in property or any obligation incurred by the debtor that is voidable under applicable law by a creditor holding an unsecured claim that is allowable under section 502....”[1] Pursuant to § 544(b), a truste


Mr. Walter F. McArdle, Esq.
Spain & Gillon, LLC
Birmingham, AL
(205) 581-6295

Ms. Virginia Tate, CFE/CIRA/EA
FAI International, Forensic Accounting & Investigations
Coeur D'Alene, ID
(208) 765-5432

Mr. Ben A. Barnes
Communications Manager
Kirkland & Ellis LLP
Dallas, TX
(214) 972-1748

Mr. Michael D. Napoli
Education Director
Akerman LLP
Dallas, TX
(214) 720-4300

Mr. Greg S. Schwegmann
Membership Relations Director
Reid Collins & Tsai LLP
Austin, TX
(512) 647-6100

Mr. John T. Farnum, Esq.
Newsletter Editor
Miles & Stockbridge PC
Washington, MD
(202) 737-9600

Mr. Nathaniel J. Palmer
Special Projects Leader
Reid Collins & Tsai LLP
Austin, TX
(512) 647-6107

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