Limiting Good-Faith Fraudulent Transfer Defense — Again
April 3, 2015, 12:45 PM EDT
Law360, New York (April 3, 2015, 12:45 PM EDT) -- The U.S. Court of Appeals for the Fifth Circuit, on March 11, 2015, held an advertising firm in a U.S. Securities and Exchange Commission receiver’s Texas fraudulent transfer suit liable for $5.9 million that it received in good faith from a Ponzi scheme debtor. Janvey v. The Golf Channel Inc., at *1 (5th Cir. March 11, 2015).
In reversing the district court, the Fifth Circuit explained that the defendant’s “services furthering a debtor’s Ponzi scheme provide no value to the debtor’s creditors.” Id. (citing Warfield v....