Fraud

Fraud, Forensics and Defenses

In Pari Delicto Defense Doesn’t Apply to a Trustee Exercising Avoidance Powers

Because a trustee suing to recover a fraudulent transfer is acting in the interest of creditors, not the debtor, the in pari delicto defense does not apply, says Bankruptcy Judge Scott Clarkson.

A Trustee’s Dilemma: Charity Avoidance Actions in §§ 548 and 550

May 2025

For Fraudulent Transfers, Retailers Needn’t Police Who Receives Value from the Purchase

Judge Peter Henderson declined to adopt an interpretation of Section 548 that would turn innocent retailers into recipients of fraudulent transfers when someone buys goods but turns the goods over to someone else.

Judgment Liens Based on Nondischargeable Debts May Be Avoided as ‘Impairments’

A homestead can be protected from collection of a nondischargeable debt, limiting the judgment creditor to attaching nonexempt property.

Betting on a Fresh Start? Gambling Debt Dischargeability in an Era of Online Sports Betting

March 2025

Debt Held Nondischargeable as to Someone Who Didn’t Commit a Defalcation

Bartenwerfer held to make a debt nondischargeable as to someone who was neither a partner nor an agent.