There is nothing quite like the horror of realizing that
a deadline has been missed. As the heart pounds at the thought of notifying
client and carrier, the mind should shift to damage control. Was this a
deadline which could be extended after the...
In an unusual move, the Supreme Court granted cert
yesterday to consider the petition of a California man who filed a pro se
petition for cert seeking to review the decision of a bankruptcy court to
surcharge his homestead exemption under section...
WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on
May 13 unanimously vacated and remanded a case involving a bank's claim that a
debtor who had acted as trustee for his father's insurance trust was guilty of
defalcation for making...
Last Friday, Florida Governor Rick Scott signed HB 95.
This bill amends § 726.109 of the Florida Statutes by adding this broad defense
to a claim to avoid a charitable contribution as a fraudulent transfer:
"The transfer of a charitable...
Determined not to hold a securities brokerage firm liable
for fraudulent transfers in a Ponzi scheme case, the Fourth Circuit recently
pushed the boundaries of fraudulent transfer law to affirm the lower court's
dismissal of the trustee's claims...
September was another busy month for Ponzi scheme news. Here
is the summary of the stories that were reported this month. Please feel free
to post comments about other Ponzi schemes that I may have missed. And please
remember that I am just relaying...
Witt , Co-author, Sheinfeld, Witt & Hyman, Collier on Bankruptcy Taxation
David Elrod , Shareholder, Elrod, PLLC, Dallas, Texas
views expressed are those of the authors alone.
View or download a Volume-By-Volume Guide to Collier on Bankruptcy 16th Edition
by Daniel M. Press and Brett Weiss
Virtually every significant
corporate chapter 11 case begins with a series of "first-day
motions," or motions filed at the same time as the petition, seeking what
is often effectively case...
Normally a trustee or investors sue the banks for funds
lost in a Ponzi scheme. Banks are accused of negligently not monitoring their accounts
for fraud or, worse yet, for aiding and abetting the Ponzi scheme perpetrator's
fraud. Federal regulators...
The Ponzi scheme news for the month of August is as
vibrant as ever. Here are brief summaries of many of the stories that have been
reported. I've included some international stories as well that made the news.
Please feel free to post comments...
Below is a summary of the activity reported for October 2014. The reported stories reflect: 8 guilty pleas or convictions in pending cases; over 158 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 newly discovered schemes...
Net winners in a Ponzi scheme - those who have profited -
often get sued to return the profits paid to them. Those who lost money (net
losers) usually don't get sued, unless they were not in "good faith." It is a
bankruptcy trustee or...
by Bill Gray
One of the most difficult conversations a bankruptcy
attorney can have with a client is to explain the concept of bankruptcy " preference claims". The conversation often
arises when a client suddenly receives a letter (or worse...
It sounds like a good idea: Insure against losses from investing
in a Ponzi scheme. Insurance policies, including homeowner's policies, can
provide coverage from losses from fraud, embezzlement or forgery. But does it
work to provide compensation...
by Raphaela Taylor
Secured lenders often resort to non-judicial foreclosure
sales of personal property upon a borrower's default. Article 9, Part 6 of the
Uniform Commercial Code requires that every aspect of such a sale must be
On this edition, Kenneth Klee of Klee, Tuchin, Bogdanoff & Stern in Los Angeles and professor at the University of California, Los Angeles School of Law, discusses the U.S. Supreme Court's March 8, 2010 decision in Milavetz, Gallop & Milavetz...
Orr , the emergency manager appointed by Michigan
Governor Rick Snyder to try to resolve the Detroit financial crisis ,
has effectively replaced the Detroit mayor, former
NBA legend Dave Bing . However, it is Orr who in the upcoming weeks
Lawniczak considers the circumstances under which the doctrine of equitable
mootness prevents appellate review of a consummated plan of reorganization. In
particular, he focuses on three recent appellate cases, from the Fifth, Sixth
This is an article that I did for this year's Advanced Consumer Bankruptcy Course. I have attempted to summarize all of the published decisions on dischargeability from the Supreme Court, Fifth Circuit, Texas District Courts and Texas Bankruptcy Courts...
I am often asked, "How many Ponzi schemes are there?"
This is a tough question to answer with 100% accuracy because there is no
central registry for all Ponzi scheme cases. The media certainly reports on the
big cases, and occasionally the...
James M. Lawniczak addresses the circuit split on whether a chapter 11 plan can include a nonconsensual nondebtor release. Of the five circuits allowing such releases under appropriate circumstances, the Seventh Circuit has gone the furthest, requiring...
Law360, Chicago (June 11, 2013, 1:41 PM ET) -- The U.S.
Department of Justice's bankruptcy watchdog arm on Tuesday released its
long-awaited new framework for scrutinizing attorneys' fees in large Chapter 11
cases, hoping to boost transparency...
Below is a summary of the activity reported for May 2014. The reported stories reflect: 9 guilty pleas or convictions in pending cases; over 95 years of newly imposed sentences for Ponzi schemers; at least 9 newly discovered schemes allegedly involving...
Two years ago in Stern v Marshall [ an enhanced version of this opinion is available to lexis.com subscribers ], the Supreme Court surprised many observers by placing constitutional limits on the jurisdiction of the United States Bankruptcy Courts. The...