Fraudulent Transfers

Fifth Circuit Again Says: No ‘Futility Defense’ Under the Texas UFTA

Following the answer by the Texas Supreme Court to a certified question, the Fifth Circuit again rules that an inability to discover fraud won’t absolve a transferee from the duty to investigate suspicions of fraud.

A Gaming License Isn’t ‘Property’ and Thus Can’t Be Fraudulently Transferred

A gaming license in Pennsylvania is a revocable ‘privilege.’

Eleventh Circuit Reads Husky Narrowly, Perhaps Too Narrowly

Reading Husky narrowly, the Eleventh Circuit requires that fraud occur before a debt arises to make the debt nondischargeable under Section 523(a)(2)(A).

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.

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.

‘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.

The Supreme Court, Dischargeability and Actual Fraud

Benchnotes October 2020

Oct 2020