June 03, 2020

Supreme Court Allows the Madoff Trustee to Sue Foreign Subsequent Transferees

The denial of ‘cert’ aids the Madoff trustee’s quest to recover 100% of defrauded customers’ cash losses.

Supreme Court

April 29, 2020

Madoff Trustee Granted Another Direct Appeal to the Second Circuit

Overturning District Judge Rakoff a second time will aid the Madoff trustee’s quest to recover 100% of defrauded customers’ net equity claims.

2nd Circuit

April 24, 2020

‘Triggering’ Creditor’s Claim Need Not Be Static Under Section 544(b)(1)

Judge Isgur applies heightened pleading standard to a complaint for fraudulent transfer with actual intent.

5th Circuit, Texas, Texas Northern District

April 15, 2020

Solicitor General Sides with the Madoff Trustee on Suing Foreign Subsequent Transferees

Denying ‘cert’ will aid the Madoff trustee’s quest to recover 100% of defrauded customers’ net equity claims.

2nd Circuit

April 01, 2020

Fifth Circuit Cites ‘Clearly Erroneous’ Findings to Declare a Debt Nondischargeable

Circuit says it’s easy to show reasonable reliance on a false financial statement.

5th Circuit

March 26, 2020

Ninth Circuit Creates a Legal Fiction to Uphold Recovery of an Unauthorized Transfer

Ninth Circuit assumed that transferred property must remain property of the estate after conversion from ‘13’ to ‘7’ before the chapter 7 trustee can avoid an unauthorized transfer under Section 549.

9th Circuit

March 24, 2020

Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction

Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).

2nd Circuit, New York, New York Eastern District

March 02, 2020

Silence in the Face of a Duty to Disclose Is Not a ‘Statement,’ 9th Cir. BAP Holds

The Ninth Circuit BAP closed a loophole that would have allowed a recipient of public assistance benefits to discharge a debt for overpayment.

9th Circuit

February 24, 2020

Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13

Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.

5th Circuit, Louisiana, Louisiana Eastern District

January 27, 2020

Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts

Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.

6th Circuit