Kathy Bazoian Phelps
June 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for June 2014. The reported stories reflect: 7 guilty pleas or convictions in pending cases; over 137 years of newly imposed sentences for Ponzi schemers; at least 8 newly discovered schemes allegedly involving...

Kenneth Klee
Professor Kenneth N. Klee on the Supreme Court's Holding in Clark v. Rameker

Excerpt: ARTICLE: I. The Lesson to Be Learned: Despite a long line of precedent broadly construing a debtor's exemptions, the Court will break from a textualist plain-meaning statutory construction when such a construction would undermine what...

Stephen Sather
Supreme Court Prepares for Stern v. Marshall Round 3

When the Supreme Court struck down the Bankruptcy Reform Act's grant of authority to bankruptcy judges in 1982, it took it took them 29 years to return to the issue. This allowed bankruptcy law to develop and mature without constantly fretting about...

Lee Berlik
Defamatory and Scandalous Material as Grounds to Seal Record

In bankruptcy court, the presumption in favor of public access to judicial records can be overcome if "scandalous or defamatory matter" is contained in a paper filed therein. (See 11 U.S.C. Section 107 ). Curiously, there is an absolute judicial...

Stephen Sather
Lessons on Fees from the Fifth Circuit's ASARCO Decision

While the Fifth Circuit has yet to definitively address the quirky Pro-Snax opinion, a new decision provides some helpful guidance on recovering attorneys' fees in bankruptcy. ASARCO, LLC v. Jordan Hyden Womble Culbreth & Holzer, P.C. (Matter...

Kathy Bazoian Phelps
Deepening Insolvency Comes Up for Air

Deepening insolvency is alive and well, at least in the Eastern District of New York. That court recently found that deepening insolvency is an appropriate measure of damages resulting from a breach of fiduciary duty claim. Federal Nat’l Mtge. Assoc...