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.
Committees
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
In a recent decision, the U.S. Court of Appeals for the Sixth Circuit found itself “obliged to explore some uncharted territory of Ohio substantive and procedural jurisprudence” arising out of fraudulent transfer and related claims from a Ponzi scheme.
In Meoli v. The Huntington National Bank (In re Teleservices Group Inc.),[1] the U.S.
Section 523(a)(2)(A) of the Bankruptcy Code provides that to the extent a debt is obtained by “false pretenses, a false representation, or actual fraud[,]” it is excepted from discharge.[1] In the past, many courts have read the phrase “false pretenses, a false representation, or actual fraud” as meaning only fraud made through misrepr
The Commercial Fraud Committee had a productive year, producing three webinars, six newsletters, several case law eblasts, and the continuation of the committee-wide conference call program with four calls this year.
It’s widely known that avoidance actions to claw back fraudulent transfers can be filed after the typical four-year limitations period has expired under most states’ versions of the Uniform Fraudulent Transfers Act (or the new Uniform Voidable Transactions Act) by invoking the “discovery rule” in those statutes.
A string of recent email and media account scams[1] remind us that fraudsters are constantly looking for gullible victims, whether lawyers or clients, to scam in seemingly legitimate schemes. Folks in financial distress are excellent targets. Here are several examples to watch for and to caution clients against.
In a recent decision, the U.S. Bankruptcy Court for the Eastern District of Michigan held that a chapter 11 debtor may pay an unsecured claim in full prior to confirmation in order to moot the creditor’s objection to the debtor’s plan of reorganization and allow confirmation of the plan.
Mr. Michael D. Napoli
Co-Chair
Akerman LLP
Dallas, TX
(214) 720-4300
Co-Chair
Akerman LLP
Dallas, TX
(214) 720-4300
Mr. Nathaniel J. Palmer
Co-Chair
Reid Collins & Tsai LLP
Austin, TX
(512) 647-6107
Co-Chair
Reid Collins & Tsai LLP
Austin, TX
(512) 647-6107
Mr. Christian A. Pereyda
Education Director
Maynard Nexsen, PC
Birmingham, AL
(205) 254-1854
Education Director
Maynard Nexsen, PC
Birmingham, AL
(205) 254-1854
Ms. Alyson M. Fiedler, Esq.
Newsletter Editor
Ice Miller LLC
New York, NY
(212) 835-6315
Newsletter Editor
Ice Miller LLC
New York, NY
(212) 835-6315
Mr. Aaron M. Kaufman
Special Projects Leader
Gray Reed & McGraw LLP
Dallas, TX
(469) 320-6050
Special Projects Leader
Gray Reed & McGraw LLP
Dallas, TX
(469) 320-6050