Fraudulent Transfers

Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability

Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’

BAP Won’t Recharacterize a Loan and Guarantee and Found No Fraudulent Transfer

The debtor’s payment on a personal guarantee was no fraudulent transfer because the debtor had received reasonably equivalent value in the forms of salary and ownership in a business that ended up being worth nothing.
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Avoidance Actions Are Estate Property that May Be Sold, the Fifth Circuit Says

The Fifth Circuit answered one of the two questions being posed at this year’s Duberstein Moot Court Competition.
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Whether a Fraudulent Transfer Claim Is ‘Direct’ or ‘Derivative’ Depends on Point of View

A D&O policy covering securities claims doesn’t provide coverage for a claim resulting from a fraudulent transfer, the Delaware Supreme Court rules.

Earmarking Requires Dominion/Control and No Diminution of the Estate, Circuit Says

Invoking Supreme Court authority, the Tenth Circuit says that inferences from the evidence are reviewed for clear error just like findings of fact themselves.
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Substantially Equivalent Value Not Required to Defeat Equitable Disgorgement

The standard for defeating equitable disgorgement is lower than the proof required to fend off receipt of a fraudulent transfer.
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