Fraud

Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability

Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’

The U.S. Supreme Court Illuminates the Basis of Vicarious Liability

A Summary of Intellectual Property Infringement and Bankruptcy

The Bankruptcy Code, in its current form, anticipates the inclusion of intellectual property (IP) within the property of an estate. Not only is IP defined [1] in the Bankruptcy Code, it is also explicitly considered in terms of executory contracts. [2] While “executory contract” is not specifically defined in the Code, the U.S.

Imputation of Fraudulent Intent to Legal Entities: Can One Bad Apple Spoil the Barrel?

How do you show that a legal entity acted with intent to defraud its creditors for purposes of an avoidance action asserted under Bankruptcy Code § 548(a)(1)(A)? After all, legal entities themselves cannot form an intent; they can only act through their officers, directors or agents. In an action to avoid a fraudulent transfer, courts determine the transferring legal entity’s intent by imputing the intent of its agents to the legal entity.