Ponzi Ruling Complicates Texas Fraudulent Transfer Litigation

Law360 (November 16, 2020, 4:49 PM EST) -- The U.S. Court of Appeals for the Fifth Circuit and the Texas Supreme Court have issued several recent opinions addressing Texas Uniform Fraudulent Transfer Act[1] issues arising out of the Stanford International Bank Inc. Ponzi scheme.

On Oct. 8, the Fifth Circuit issued its latest opinion in Janvey v. GMAG LLC, reaffirming and clarifying that a transferee on inquiry notice of fraudulent conduct must conduct a diligent investigation to be able to rely on TUFTA's good faith affirmative defense, rather than arguing that such an investigation would have been futile. 

What is the gist of the latest Janvey opinion?

Ralph S....

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