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Fraudulent Transfers

Connecticut Joins New York on Fraudulent Transfers for Children’s Tuition

Student’s entitlement to a refund determines whether a parent’s tuition payments are constructively fraudulent transfers.

Texas Law Has Fraudulent Transfer Liability When the Bankruptcy Code Doesn’t

Fifth Circuit rules that the Texas UFTA doesn’t have a ‘futility defense’ when a transferee is on inquiry notice regarding receipt of a fraudulent transfer.
Court: 

Tuition Payments for Adult Children Squarely Held to Be Constructively Fraudulent

New York judge allows insolvent parents to pay for a minor child’s expensive education.

Safe Harbor Given Extraterritorial Effect to Benefit Madoff Feeder Funds Customers

Will the avoiding powers and the safe harbor both have extraterritorial effect? Stay tuned!

Tuition Payments by Insolvent Parents (Likely) Constitute Fraudulent Transfers

District judge in Brooklyn overturns the bankruptcy court and again exposes colleges and universities to the receipt of fraudulent transfers when insolvent parents pay their childrens’ tuition.

Second Circuit Seems Primed to Give Extraterritorial Effect to Avoiding Powers

A reversal in the Second Circuit would mean that trustees can recover from subsequent recipients of fraudulent transfers, even if the subsequent transfers were made abroad.
Court: 

‘Mere Conduit’ Defense to a Fraudulent Transfer Isn’t Limited to Banks

Florida judge finds no duty to investigate suspicions of fraud when even the auditors had been duped.

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