Bankruptcy

    • 6 Jun 2016

    May 2016 Ponzi Scheme Roundup

    Below is a summary of the activity reported for May 2016. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 129 years of newly imposed sentences for people involved in Ponzi schemes; at least 8 new Ponzi schemes worldwide; and an average age of approximately 47 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And...
    • 3 May 2016

    April 2016 Ponzi Scheme Roundup

    Below is a summary of the activity reported for April 2016. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 26 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 new Ponzi schemes worldwide; and an average age of approximately 50 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed...
    • 1 Apr 2016

    March 2016 Ponzi Scheme Roundup

    Below is a summary of the activity reported for March 2016. The reported stories reflect: 7 guilty pleas or convictions in pending cases; over 120 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 new Ponzi schemes worldwide involving more than $400 million; and an average age of approximately 50 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi...
    • 2 Mar 2016

    February 2016 Ponzi Scheme Roundup

    Below is a summary of the activity reported for February 2016. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 108 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 new Ponzi schemes worldwide involving more than $8.6 billion; and an average age of approximately 53 for the alleged Ponzi schemers. Please feel free to post comments about these or other...
    • 1 Feb 2016

    January 2016 Ponzi Scheme Roundup

    Below is a summary of the activity reported for January 2016. The reported stories reflect: 5 guilty pleas or convictions in pending cases; over 70 years of newly imposed sentences for people involved in Ponzi schemes; at least 5 new Ponzi schemes worldwide; and an average age of approximately 53 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed...
    • 5 Jan 2016

    December 2015 Ponzi Scheme Roundup

    Below is a summary of the activity reported for December 2015. The reported stories reflect: 6 guilty pleas or convictions in pending cases; over 14 years of newly imposed sentences for people involved in Ponzi schemes; at least 5 new Ponzi schemes worldwide; and an average age of approximately 47 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed...
    • 3 Dec 2015

    November 2015 Ponzi Scheme Roundup

    Below is a summary of the activity reported for November 2015. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 77 years of newly imposed sentences for people involved in Ponzi schemes; at least 9 new Ponzi schemes worldwide; and an average age of approximately 54 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed...
    • 11 Nov 2015

    Second Western District (TX) Judge Finds Proceeds From Post-Petition Sale Can't Be Clawed Back in Chapter 7

    After sorting through conflicting precedents, Judge Craig Gargotta has ruled that a chapter 7 debtor who owned a homestead property on the date of bankruptcy and claimed the property as exempt did not lose the exemption when the property was sold and proceeds were not reinvested within six months. Lowe v. DeBerry (In re Deberry) , Adv. No. 15-5054 (Bankr. W.D. Tex. 10/28/15) [subscribers can access an enhanced version...
    • 2 Nov 2015

    October 2015 Ponzi Scheme Roundup

    Below is a summary of the activity reported for October 2015. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 93 years of newly imposed sentences for people involved in Ponzi schemes; at least 4 new Ponzi schemes; and an average age of approximately 54 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please...
    • 23 Oct 2015

    Fifth Circuit Bankruptcy Report: August-September 2015

    The summer months have been slow at the Fifth Circuit. August and September's opinions include an update on a prior opinion about abstention related to a chapter 15, judicial estoppel, mootness of an appeal of a sale order, a motion to compromise, removal of a trustee, recognition of a foreign judgment and issues relating to a homestead. Bankruptcy; Abstention; Remand Firefighters Retirement System v. Citco Group...
    • 12 Oct 2015

    TelexFree Trustee Seeks Approval For "Unprecedented" Electronic Claims Process

    "The Debtors’ operations constituted a massive Ponzi /pyramid scheme." - Court appointed trustee Stephen B. Darr The court-appointed Bankruptcy trustee responsible for marshaling assets for victims of the massive alleged $3 billion TelexFree Ponzi/pyramid scheme has asked a Massachusetts bankruptcy court for permission to institute an electronic claims process to deal with the anticipated hundreds...
    • 6 Oct 2015

    Energy Future Holdings – Kicking a Very Large Can Down the Road

    by Ben Feder Energy Future Holdings (“EFH” or “Debtors”) has cleared all of the preliminary hurdles in its path as it moves towards the confirmation of its plan of reorganization (the “Plan”). Last week Judge Christopher Sontchi of the United States Bankruptcy Court for the District of Delaware approved the Debtors’ disclosure statement in support of the Plan, authorized...
    • 5 Oct 2015

    September 2015 Ponzi Scheme Roundup

    Below is a summary of the activity reported for September 2015. The reported stories reflect: 5 guilty pleas or convictions in pending cases; over 41 years of newly imposed sentences for people involved in Ponzi schemes; at least 3 new Ponzi schemes; and an average age of approximately 52 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please...
    • 15 Sep 2015

    After Woerner, Courts Look for "Good Gambles"

    You've got to know when to hold 'em Know when to fold 'em Know when to walk away And know when to run --Kenny Rogers, The Gambler After the Fifth Circuit’s opinion in Barron & Newburger, P.C. v. Texas Skyline Ltd. (Matter of Woerner) , 783 F.3d 286 (5 th Cir. 2015), lawyers for bankruptcy estates breathed a sigh of relief, knowing that they could still be compensated for “good gambles”...
    • 9 Sep 2015

    Texas Judges Explore State Law on Liens and Homestead Exemptions

    Much state law regarding liens and property rights emerges from the Bankruptcy Courts because they are frequently the first to confront novel issues. Two recent opinions from the Western District of Texas bankruptcy judges confirm this trend. In one case, Judge Tony Davis found that an option to acquire a leased homestead could be claimed as exempt, No. 14-11006, James Wayne See (Bankr. W.D. Tex. 7/14/15) [subscribers...
    • 2 Sep 2015

    Energy Future Holdings – Another Major Success for Chapter 11 Mediation?

    by Ben Feder Mediation has become an invaluable tool in large chapter 11 cases . Traditionally viewed as a means for resolving discrete disputes between a debtor’s estate and an adversary party, in recent years mediation in certain complex cases has evolved into a multi-party undertaking involving claimants from all levels of a debtor’s capital structure, with the ambitious goal of resolving the entire...
    • 2 Sep 2015

    Understanding the Automatic Stay in a Debtor-General Contractor Bankruptcy Case

    by Shalanda Franklin What do you do when the general contractor files for bankruptcy before paying your invoices? When you receive notice that a general contractor of a project that you have been involved with has filed for bankruptcy, you must immediately stop any actions you may have begun to collect unpaid invoices. United States bankruptcy law requires all creditors to stop collection activities when a person or company...
    • 20 Aug 2015

    Sands Anderson Report on Creditors Committee Formation in Alpha Natural Resources Chapter 11

    by Roy M. Terry, Jr. An Official Committee of Unsecured Creditors (“the Committee”) was appointed on Wednesday, August 12, 2015 in the Chapter 11 case of Alpha Natural Resources, Inc. (“ ANR “). ANR’s bankruptcy case was filed on August 3, 2015 in the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division . After interviewing those representatives of...
    • 7 Aug 2015

    Sands Anderson Report on First Day Hearing in Bankruptcy Filings of Alpha Natural Resources

    by Roy M. Terry, Jr. Lawyers from the bankruptcy team of Sands Anderson attended “first day” hearings in the Chapter 11 bankruptcy case of Alpha Natural Resources, Inc. (“Alpha”) and its 149 related companies held on August 4, 2015 in the United States Bankruptcy Court, Eastern District of Virginia, Richmond Division . The bankruptcy case represents the latest significant filing in Richmond...
    • 4 Aug 2015

    July 2015 Ponzi Scheme Roundup

    Below is a summary of the activity reported for July 2015. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 166 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 new Ponzi schemes involving over $112 million; and an average age of approximately 50 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that...
    • 15 Jul 2015

    Energy Future Holdings – More Bad News for Bondholders on Make-Whole Premiums

    by Ben Feder For the second time in the past few months, Judge Christopher Sontchi has dashed the hopes of certain creditors in the Energy Future Holdings (“ EFH ”) chapter 11 case that they would be paid a make-whole premium worth over $400 million . Make-whole premiums are often used in connection with the issuance of debt in order to protect noteholders with long term investment horizons from being...
    • 8 Jul 2015

    Supreme Court Says Lawyers Don't Get Paid for Defending Their Fees

    A Texas law firm did a great job and beat back a punitive attack on their fees. However, the Supreme Court has ruled that they may not receive compensation for defending their work. Baker Botts, LLP v. ASARCO, LLC , No. 14-103, 2015 U.S. LEXIS 3920 (6/15/15) [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ]. Introduction I have previously talked about the case here . As a result...
    • 19 Jun 2015

    Baker Botts v. Asarco: The Supreme Court Shows Again That It Really Doesn’t Understand Corporate Bankruptcy Cases

    by Ben Feder The Supreme Court has not handled its recent major bankruptcy decisions well. The jurisdictional confusion engendered by its 2011 decision in Stern v. Marshall was only partially clarified by this term’s opinion in Wellness International Network v. Sharif . The Court’s ruling this week in Baker Botts v. Asarco , while narrower, stands as another example of obtuse judicial reasoning that will...
    • 10 Jun 2015

    D&O Insurance: Debtor-in-Possession Claims and the Insured vs. Insured Exclusion

    The traditional Insured vs. Insured exclusion found in many D&O insurance policies is a frequent source of claims disputes, particularly in the bankruptcy context . As its name suggests, the Insured vs. Insured exclusion precludes coverage for claims brought by one Insured against another Insured. The typical Insured vs. Insured exclusion includes a provision (often referred to as a coverage carve-back) that preserves...
    • 8 Jun 2015

    Fifth Circuit Report: April-May 2015

    At the same time that the Supreme Court was busy ruling upon its bankruptcy cases for the term, the Fifth Circuit was active as well. There were so many cases in April, that it took me two months to summarize them. Over the course of April and May, the Court decided no less than sixteen cases with bankruptcy implications. These include cases relating to civil contempt, post-judgment remedies being granted pre-judgment...