550 | ABI

Views from the Bench: Great Debates

Bankruptcy Code

502

Topics

Business Reorganization

International Insolvency

Second Circuit Upholds the Madoff Trustee’s Calculation of Fraudulent Transfer Claims

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.

Court :

2nd Circuit

Fraudulent Transfer Law Doesn’t Victimize Innocent Parties, Judge Wiles Says

Ownership of a bank account isn’t enough by itself to make the account holder the initial transferee of a fraudulent transfer.

Court :

2nd Circuit

New York

New York Southern District

‘No Harm, No Foul’ Doesn’t Entitle a Debtor to a Discharge, BAP Says

Advice-of-counsel defense doesn’t work when intent is clearly fraudulent.

Court :

10th Circuit

Using a Casino’s ATM Makes the Casino the Initial Transferee, Not a ‘Mere Conduit’

New York judge gives casinos the responsibility for assuring that a gambler’s use of a corporate ATM card is not a fraudulent transfer.

Court :

2nd Circuit

New York

New York Southern District

Tenth Circuit Protects Subsequent Recipients of Fraudulent Transfer with a New Defense

In a fraudulent transfer of a contract claim, a subsequent recipient of cash proceeds from the claim has no liability under Section 550(a)(2), according to the Tenth Circuit.

Court :

10th Circuit