Dena Kaufman | Bloomberg Law Perkins v. Haines, No. 10-10683, 2011 BL 278341 (11th Cir. Oct. 27, 2011) The United States Court of Appeals for the Eleventh Circuit affirmed a bankruptcy court's decision denying a motion for partial summary judgment in which the plaintiff argued that a transfer to redeem equity is not a transfer "for value" when made at time when the entity is insolvent making 11 U.S.C. § 548(c)unavailable as an affirmative defense. The Eleventh Circuit agreed with the bankruptcy court, finding that such rule does not apply in the context of a Ponzi scheme where the initial investment in the entity's equity was induced by fraud.
The Ponzi Scheme
The Adversary Proceedings
Affirmative Defense of § 548(c) Is Available To Equity Holder Investors in Ponzi Scheme
Eleventh Circuit Affirms Bankruptcy Court Ruling
To view additional stories from Bloomberg Law® request a demo now