Tag «Ponzi scheme»

Ponzi Scheme Trustee Has Standing to Pursue Recovery Claims, and Is Not Barred by in Pari Delicto Doctrine, in Sixth Circuit

Ponzi Scheme Trustee Has Standing to Pursue Recovery Claims, and Is Not Barred by in Pari Delicto Doctrine, in Sixth Circuit, Which Joins Third, Eighth and Eleventh Circuits in Declining to Follow Second Circuit’s Wagoner Rule In 1991, the Second Circuit, in Shearson Lehman Hutton, Inc. v. Wagoner, 944 F.2d 114, 120 (2d Cir. 1991), held …

A Receiver Has Standing to Pursue Fraudulent Transfer Claims on Behalf of Receivership Entity

As set forth in Scholes v. Lehmann and adopted by courts across the country, a Receiver has standing to pursue fraudulent transfer claims because the receivership entity in whose shoes the Receiver stands is deemed to be creditor of the Ponzi scheme or other fraudulent enterprise that was placed in receivership.  That seminal case and its ever-growing progeny …

Receivers’ Fraudulent Transfer Claims Are Not Barred by In Pari Delicto Doctrine: A Survey of Federal and State Court Decisions

A growing list of federal and state courts have determined that fraudulent transfer claims brought by an equity receiver are not barred by the doctrine of in pari delicto. While the following list includes many of the significant and most frequently-cited decisions setting forth or upholding this proposition of law, it is by no means …