Fraudulent transfers

Bitcoin – currency, the equivalent of U.S. dollars, or a commodity more similar to a product or stock?

From April 24 to 27, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee of CPI Corp., et al., filed preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d).

An Maryland attorney wrote me an email about his representation of a person who received what was determined to be the fraudulent transfer of a piece of real property. His client had spent money maintaining and repairing the property. The attorney wanted to know if his client was entitled to payment for money he spent on property fraudulently transferred to him by a bankruptcy debtor.

People who receive money from Ponzi schemes usually have to return the money if the Ponzi organizer filed bankruptcy. The bankruptcy trustee typically pursues recipients of Ponzi profits as transferees of fraudulent transfers made by the Ponzi organizer. What happens when the Ponzi organizer donates part of Ponzi profits to a charity?

Sometimes a creditor with a cause of action against a corporation will try to “pierce the veil” of the corporation to hold liable the owners of the company if the creditor believes the owners have significant assets. There is a different concept called “reverse piercing” when a creditor will try to attack a corporation and its assets to satisfy a claim initially brought against the individual owners.