Herbert Stettin, the bankruptcy trustee appointed to
recover assets for the benefit of victims defrauded by Scott Rothstein's $1.4
billion Ponzi scheme, filed
several more clawback suits seeking the return of funds spent by Rothstein
on expensive jewelry and exotic automobiles. The clawback...
To gain valuable recognition, Ponzi perpetrators often
make handsome contributions to charities. But those contributions create
political difficulties for the trustees and receivers in evaluating whether to
seek the return of those contributions on fraudulent transfer theories for the
On April 3, 2012,
Minnesota Governor Mark Dayton signed a new law, Chapter 151, House File 1384,
designed to protect nonprofits from having to pay back donations made by Ponzi
perpetrators and other fraudulent sources.
The new law actually restricts a trustee's recovery in three distinct
Sheila Gowan, the trustee of Dreier, LLP ("DLLP"), has
filed a fraudulent transfer action against Marc Dreier's personal art advisor,
Heidi Lee, and her business, Heidi Lee Art Advisory. Gowan asserts that Marc Dreier
caused DLLP to make a series of transfers to Lee totaling $1,940,915...
For investors who need help from the IRS on how to treat
clawback payments made to trustees, the IRS has published a new webpage .
So far the IRS has posted answers to two questions:
1. How does a
taxpayer treat the repayment of a clawback?
2. What does the
taxpayer need to establish...
Clawback actions in Ponzi scheme cases may be a dime a
dozen these days, but the issues now raised by the Supreme Court decision in Stern v. Marshall , __ U.S. __, 131 S. Ct.
2594 (2011), can become quite costly for those involved. In Stern
v. Marshall , the Supreme Court held that bankruptcy judges...
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 contribution that is received
in good faith by a...
The court-appointed receiver overseeing the recovery of funds for the $600 million ZeekRewards Ponzi scheme has filed his quarterly update (the "Update") with the court, providing interesting insight into asset recovery, litigation against so-called "net winners," and the recently...
A New Mexico couple facing the possible "clawback" of nearly $1 million from the largest Ponzi scheme in New Mexico history has filed for bankruptcy in a bid to avoid dodge the lawsuit. Mark and Maura Dahrling, of Albuquerque, New Mexico, were among hundreds of investors that lost approximately...
The court-appointed receiver overseeing recovery of assets for Allen Stanford's massive $7 billion Ponzi scheme has filed a lawsuit seeking the return of more than $500,000 donated by Stanford to charitable organizations headed by golfer Tiger Woods. Ralph Janvey, the court-appointed receiver, filed...
The Eleventh Circuit issued an opinion this week that has to make receivers happy. See Wiand v. Lee , 2014 U.S. App. LEXIS 10154 (11th Cir. Jun. 2, 2014) [ an enhanced version of this opinion is available to lexis.com subscribers ]. Fraudulent transfer claims are most often the bread and butter of a...
Can different but related account holders offset losses in one account against gains in another account? Can a husband and wife with separate accounts offset losses in one account against gains in the other? When there is a family trust, can the trustee and beneficiary offset gains in the trust account...