Join Today and Benefit Daily from ABI's 35+ Years of Insolvency Expertise.
Join Today!
Help Center

Commercial Fraud Committee


Post date: Friday, June 24, 2016

On Sept. 22, 2011, Charlene Milbury filed for chapter 7 bankruptcy protection in the Central District of California,[1] starting the clock on a two-year period for the commencement of avoidance actions by the trustee. The debtor was the sole owner of a materials-hauling business known as Charlene’s Transportation Inc.

Stephen C. Stapleton
Post date: Friday, April 22, 2016

You operate a law firm in Texas. You are hired by a Utah business trust to represent a friend of the trust’s founder, who is facing criminal charges in New Hampshire. You represent the friend, and for your legal services you are paid $90,000 by the trust.

Post date: Friday, April 22, 2016

On Nov. 6, 2015, the U.S. Supreme Court granted certiorari in Husky International Electronics Inc. v. Daniel Lee Ritz, Jr. and heard oral arguments in the case on March 1, 2016. The issue pending before the Supreme Court concerns whether “actual fraud” under 11 U.S.C.

Post date: Friday, April 22, 2016

[1]In a decision that deserves the close attention of secured lenders, the U.S. Court of Appeals for the Seventh Circuit held that a bank’s awareness of suspicious facts about the collateral pledged to secure its loan required bank officials to perform a diligent investigation of possible fraud or other wrongdoing by its borrower.

Post date: Thursday, April 21, 2016

The legal saga of the Wyly brothers continues.

Born in rural Louisiana during the Great Depression, Samuel Wyly and his older brother Charles, Jr., built a fortune from a computer company and later from steakhouses and Michael’s, an arts-and-crafts retail chain. In 2010, however, the U.S. Securities and Exchange Commission (SEC) brought a civil enforcement action against the Wylys, alleging that they participated in an elaborate international securities fraud scheme.

Post date: Thursday, April 21, 2016

In a Jan. 8, 2016, opinion, the U.S. Court of Appeals for the Seventh Circuit reminded secured lenders of their due diligence obligations when choosing to extend credit. In Grede v. Bank of New York Mellon Corp. and Bank of New York (Grede), a panel of the Seventh Circuit held that Bank of New York and its successor, Bank of New York Mellon Corporation, (collectively, the bank) were on inquiry notice of their obligation to investigate the provenance of the collateral used by Sentinel Management Group, Inc. to secure several hundred million dollars in loans made to Sentinel.

Post date: Thursday, April 21, 2016

In Sikirica v. Wettach,[1] the Third Circuit held that a party seeking to avoid a fraudulent transfer under Pennsylvania’s Uniform Fraudulent Transfer Act (PUFTA)[2] bears the burden of persuasion on all elements, including the insolvency of the debtor and the lack of reasonably equivalent value in exchange.

Post date: Thursday, April 21, 2016

A Ponzi scheme is a fraudulent arrangement where an entity makes payments to investors from monies obtained from later investors, not from profits of any underlying business venture. The scheme is a variation of robbing Peter to pay Paul. Charles Ponzi is regarded as the mastermind of the first such scheme.

Post date: Monday, December 28, 2015

Fraudulent transfer plaintiffs be reminded: the heightened pleading standard in Rule 9(b) continues to create difficulty surviving a motion to dismiss actual fraudulent transfer claims. In In re Lyondell Chem. Co,[1] in the context of fraudulent transfer litigation following a leveraged buyout, the United States Bankruptcy Court for the Southern District of New York reaffirmed that the Rule 9(b)


Ms. Melissa Davis, CPA, CIRA, CFE
KapilaMukamal, LLP
Fort Lauderdale, FL
(954) 761-1011

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

Mr. Ben A. Barnes
Communications Manager
Reid Collins & Tsai LLP
Dallas, Tx
(214) 420-8913

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

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

Mr. Adam D. Crane
Special Projects Leader
HSM Chambers
George Town, Grand Cayman,
(345) 815-7364

Please note that in order to view the content for the Committee Newsletters you must either sign in if you are already an ABI member, or otherwise you may Become an ABI Member