United States Ninth Circuit

In bankruptcy proceedings involving a bankrupt company that had been operated as a Ponzi scheme, summary judgment for the bankruptcy trustee avoiding transfers from bankruptcy debtor to appellant-investor is affirmed where: 1) investor's argument that the debtor's transfers were not actually fraudulent failed because the scheme operator's declaration, coupled with the circuit court's treatment of Ponzi schemes in the context of fraudulent transfers, dictated to the contrary; and 2) the district court was correct to conclude that the good faith exception to actually fraudulent transfers was not barred as a matter of law because the investor's right to rescission and restitution were "reasonably equivalent value" as described by prior case law.

Appellate Information

• Argued 02/12/2008
• Decided 04/16/2008
• Published 04/16/2008

Judges

• TROTT, Circuit Judge:, Before:  STEPHEN S. TROTT, RICHARD R. CLIFTON, and CONSUELO M. CALLAHAN, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellees:
  
• David R. Weinstein, Sharon Z. Weiss, Weinstein, Weiss & Ordubegian LLP, Los Angeles, CA, for the appellant/cross-appellee., Paul J. Laurin, Weiner & Laurin, LLP, Encino, CA, for the appellee/cross-appellant.