Judge Revives $26M Clawback Suit In Mortgage Ponzi Case

Law360, Philadelphia (March 12, 2013, 3:16 PM EDT) -- A Pennsylvania federal judge Monday overturned a bankruptcy court’s ruling that the trustee of a bankrupt home refinancing company implicated in a $65 million Ponzi scheme could not recover nearly $26 million in transfers made to numerous financial institutions, pitching the case back to bankruptcy court.

While U.S. District Judge Mitchell Goldberg affirmed the U.S. Bankruptcy Court’s ruling that Lynn Feldman, the trustee for Image Masters Inc., could not recover the payments on grounds of constructive fraud, the judge held that she could pursue claims against...
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