Circuits are split 2/1 on whether a debtor must have committed a securities law violation before a judgment is made nondischargeable under Section 523(a)(19).
Fictitious profits in account statements don’t represent ‘value’ and give rise to a defense for receipt of a fraudulent transfer with ‘actual intent,’ the Second Circuit rules.
The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.
