News & Analysis as of

Fraud Bankruptcy Court

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
Steptoe & Johnson PLLC

Appeals Courts Say Fraud Debts Can Survive Small Business Bankruptcies

Congress provided a streamlined mechanism for small businesses to reorganize when it enacted the Small Business Reorganization Act of 2019 and added Subchapter V to Chapter 11 of the Bankruptcy Code. Subchapter V gives small...more

Carey Olsen

Eastern Caribbean Court of Appeal delivers key ruling concerning directors' duties and creditor protection in the British Virgin...

Carey Olsen on

In the recent decision of Byers & Richardson v Chen Ningning (BVIHCMAP2024/0009) ("Byers"), the Eastern Caribbean Court of Appeal ("COA") considered the scope of the director’s duty to creditors when a company is insolvent or...more

Cozen O'Connor

Hundreds of Millions Lost by Seniors Due to Bankruptcies Filed by CCRC Communities

Cozen O'Connor on

The Wall Street Journal has reported that recent bankruptcies nationwide in the Continuing Care Retirement Community (CCRC) segment of the long-term care marketplace have resulted in residents losing their buy-in deposit....more

Allen Matkins

Complaint Need Not Allege Fraud, Misrepresentation, Or Deceit To Be "Based Upon" A Corporation’s “Fraud, Misrepresentation or...

Allen Matkins on

In 2002, the California Legislature created the Victims of Corporate Fraud Compensation Fund as part of the Corporate Disclosure Act. There are a number of conditions that must be met to receive a payout from the fund.  One...more

Seward & Kissel LLP

Watching the Watchers, Celebrity Status, and Harvester of Sorrow

Seward & Kissel LLP on

Weight Watchers files bankruptcy after growth in GLP-1 drugs | Bloomberg via Yahoo! Finance - Having rebranded as WW International in 2018 and acquired Sequence, a telehealth company, in 2023, the 62-year-old health and...more

Carey Olsen

Standing room only: a “person aggrieved” under s.273 of the BVI Insolvency Act 2003

Carey Olsen on

In a judgment handed down on 15 April 2025, Stevanovich v Matthew Richardson and another (as Joint Liquidators of Barrington Capital Group Ltd (in Liquidation) [2025] UKPC 18, the Judicial Committee of the Privy Council (the...more

Ward and Smith, P.A.

Entitled to Stay Relief? Prove it.

Ward and Smith, P.A. on

For example, you make a commercial real estate loan and record your deed of trust. The borrower pays you for a time but then defaults.  You tried loan forbearance and modification, but it was unsuccessful. The borrower falls...more

Gray Reed

Scribner’s Error: A Cautionary Tale of Oil & Gas Fraud

Gray Reed on

DALF Energy, LLC v. GS Oilfield Services addresses a fiduciary’s deceptive actions in oil and gas transactions. The Fifth Circuit held: self-dealing may constitute a breach of fiduciary duty even when the principal is...more

Patterson Belknap Webb & Tyler LLP

What To Do When You Expect a Debtor Has Committed Bankruptcy Fraud

The U.S. bankruptcy system is generally an efficient mechanism for companies and individuals seeking to restructure their debts and obtain a fresh start. However, the effectiveness of the bankruptcy system relies on integrity...more

Morris James LLP

Navigating Cryptocurrency Disputes in Litigation and Bankruptcy: Legal Challenges and Complexities

Morris James LLP on

The rise of cryptocurrency has introduced new complexities to both traditional litigation and bankruptcy courts. While these two legal arenas share some overlap, the treatment of cryptocurrency in each context is distinct,...more

IR Global

Seán Dunne’s escape from bankruptcy foiled by ‘incredible’ attitude

IR Global on

In the high-stakes trial, Coan et al. v. Dunne et al., Attorney Thomas H. Curran, representing Chapter 7 Trustee Richard M. Coan, successfully exposed the Irish developer Sean Dunne and his wife, Gayle Killilea’s unsuccessful...more

Lowndes

Understanding Non-Dischargeable Debts Under the Bankruptcy Code: A Guide for Creditors

Lowndes on

When a debtor files for bankruptcy, creditors often fear their claims will be wiped away. However, under Section 523 of the Bankruptcy Code, certain debts are categorized as non-dischargeable, meaning the debtor cannot...more

Cozen O'Connor

The Supreme Court of Canada Clarifies the Doctrine of Corporate Attribution

Cozen O'Connor on

On October 11, 2024, the Supreme Court of Canada (the SCC) rendered a decision clarifying the corporate attribution doctrine in the bankruptcy and insolvency context. Aquino v. Bondfield Construction Co.1 involved a dispute...more

Stradling Yocca Carlson & Rauth

California Business Divorce: Partner Fraud and Personal Liability - Important Lessons from Bartenwerfer v. Buckley

The Story Behind the Case - Kate and David Bartenwerfer started their business with a straightforward plan. The couple decided to renovate and sell a house they jointly owned in San Francisco. David handled the remodeling...more

Pillsbury Winthrop Shaw Pittman LLP

Lenders Beware: The Ponzi Scheme Presumption Can Trap an Unwitting Lender

A recent Ninth Circuit Court decision highlights a risk for lenders caught up in a Ponzi scheme. In its recent EPD Investment decision, the Ninth Circuit reaffirmed that (as a matter of law) upon finding the existence of a...more

King & Spalding

Bankruptcy Court Determines that Dividend Payments Permitted Under Subordinated Loan Agreement Are Not Fraudulent Conveyances

King & Spalding on

On January 18, 2024, the U.S. Bankruptcy Court for District of South Carolina entered judgment, after a bench trial, in favor of minority shareholders of a debtor whose liquidating trust had sued to recover dividend payments...more

Seward & Kissel LLP

Shopping Spree, My Own Prison, Aggregate Supply, and Bad Form

Seward & Kissel LLP on

Latham, Jackson Walker Avoid Sanctions Over Bankruptcy Forum Shopping Dispute | Reuters - In a court hearing on Monday, U.S. Bankruptcy Judge Christopher Lopez in Houston ruled that law firms Latham & Watkins and Jackson...more

Falcon Rappaport & Berkman LLP

Fourth Circuit Holds That Settlement of Nondischargeable Debt and Resulting Interest and Fees Owed Thereunder Are Both...

We have written in the past about exceptions to the general rule regarding a debtor’s ability to discharge debt in bankruptcy and achieve a “fresh start.” In a recent decision of interest, the Court of Appeals for the Fourth...more

Troutman Pepper Locke

High Court Bankruptcy Ruling Is a Warning to Joint Obligors

Troutman Pepper Locke on

In a unanimous decision, the U.S. Supreme Court held that Section 523(a)(2)(A) of the U.S. Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor's own culpability. ...more

Ward and Smith, P.A.

No Discharge for Bonnie, No Discharge for Clyde.

Ward and Smith, P.A. on

The Bankruptcy Code generally allows a debtor to wipe out all pre-bankruptcy debts and get a fresh start in life.  But not all debts are equal.  Some debts can't be discharged, meaning they survive bankruptcy, and the...more

Harris Beach Murtha PLLC

U.S. Supreme Court: Debt Incurred by Partner’s Fraud is Non-Dischargeable in Bankruptcy

On February 22, 2023, in Bartenwerfer v. Buckley, 598 U.S. __ (2023), the U.S. Supreme Court ruled that a debtor who is liable for her partner’s fraud cannot discharge that debt in bankruptcy, regardless of her own...more

Miller Nash LLP

Supreme Court Limits the Ability to Discharge Debts Obtained by Fraud

Miller Nash LLP on

The discharge provided in bankruptcy is fundamental, allowing the “honest but unfortunate” debtor a fresh start. There are various exceptions to the discharge found in Sections 523 and 727 of the Bankruptcy Code—designed to...more

Seward & Kissel LLP

Not So Silver Lining, Weird Science, F is for Fraud, and Alex Jones Under the Microscope

Seward & Kissel LLP on

Below is our initial take on recent bankruptcy-related developments: Silvergate reported a $1 billion loss for the fourth quarter and said it is unable to meet an extended March 16 deadline for submitting its annual...more

Epstein Becker & Green

Does the Left Hand Need to Know What the Right Is Doing: The Supreme Court Holds That Fraudulent Debts of One Partner Cannot Be...

Epstein Becker & Green on

Selecting a business partner, much like selecting a spouse, involves a great deal of trust in the other’s representations and conduct as the actions of one, for better or worse, can be attributed to the other. The intricacies...more

Nelson Mullins Riley & Scarborough LLP

Supreme Court Confirms Nondischargeability of Debts Obtained by Fraud

In a unanimous decision handed down on Feb. 22, 2023, the Supreme Court reinforced one of the Bankruptcy Code’s important creditor protections. In Bartenwerfer v. Buckley, No. 21-908, 598 U.S. ___ (2023), the Court confirmed,...more

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