February 07, 2019

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.

2nd Circuit, Connecticut

January 16, 2019

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.

5th Circuit

December 19, 2018

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.

2nd Circuit, New York, New York Southern District

December 17, 2018

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!

2nd Circuit, New York, New York Southern District

December 05, 2018

Unprotected Sex Results in a $250,000 Nondischargeable Debt

Lying about herpes resulted in a nondischargeable debt for fraud and battery.

December 03, 2018

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.

2nd Circuit, New York, New York Eastern District

November 30, 2018

Circuit Upholds $257,000 in Sanctions for Failure to Disclose a Claim Assignment

A lawyer was personally assessed $257,000 in sanctions for failure to disclose that his client had sold its $14 million claim.

6th Circuit

November 26, 2018

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.

2nd Circuit

November 09, 2018

‘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.

11th Circuit, Florida, Florida Middle District

October 19, 2018

‘Innocent’ Transferee Held Potentially Liable for Payment from a Ponzi Scheme

With partial success, trustee sues the casino where a fraudster gambled away stolen money.

2nd Circuit, New York, New York Eastern District