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Fraud Fraudulent Transfers

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
King & Spalding

Divided Ninth Circuit Panel Reaffirms “Ponzi Scheme Presumption” of Intent to Defraud in Fraudulent Transfer Action

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On August 23, 2024, a divided panel of the U.S. Court of Appeals for the Ninth Circuit affirmed a jury’s verdict for a Chapter 7 trustee in an actual fraudulent transfer claim, which was based on the determination that...more

Gray Reed

Fraud in the Oil Patch the Modern Way

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Once upon a time a good way to commit oil patch theft was to back a truck up to the tank battery in the middle of the night, fill ‘er up, and drive off into the darkness. In re: Black Elk Energy Offshore Operations LLC shows...more

King & Spalding

Sixth Circuit Holds that Bank Settlement Payment to Resolve Fraudulent Transfer Liability Is Insurable Loss Under Ohio Law and...

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On February 1, 2024, the U.S. Court of Appeals for the Sixth Circuit, in an unpublished opinion, held that a bank’s professional liability insurance includes coverage for a $32 million settlement payment the bank made to...more

McGlinchey Stafford

Am I Bound by My Client’s Settlement Agreement? - McGlinchey Commercial Law Bulletin - March 8, 2024

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In this appeal, the Eleventh Appellate District affirmed the trial court’s decision to grant the defendant summary judgment, finding, among other things, that equitable estoppel was a defense, not affirmative cause of action....more

StoneTurn

Can Understanding Insider Risk Help to Prevent Fraud?

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The UK government is moving towards introducing a new corporate criminal offence: Failure to Prevent Fraud and Money Laundering. The draft offence, contained in the Economic Crime and Corporate Transparency Bill, would hold...more

BakerHostetler

Deeper Dive into the Data

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Every year, BakerHostetler collects and analyzes various metrics about the incident response matters we handle. In 2022, we handled over 1,160 incidents. The most striking trends we saw across those incidents were an overall...more

Rivkin Radler LLP

The Title Reporter — Spring 2023

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Here is what we cover in this issue of The Title Reporter: A Legal Update for the Title Insurance Industry: •An appellate court in Arkansas, affirming a trial court’s decision, has ruled that a title insurer had properly...more

Jenner & Block

Compilation of Recent Developments in Bankruptcy Law - January 2023

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1. AUTOMATIC STAY - 1.1 Covered Activities - 1.1.a Court declines to enjoin third party claims against the debtor’s jointly liable parent corporation. The debtor manufactured earplugs for many years. A major...more

Jenner & Block

Recent Developments in Bankruptcy Law, January 2023

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1. AUTOMATIC STAY - 1.1 Covered Activities - 1.1.a Court declines to enjoin third party claims against the debtor’s jointly liable parent corporation. The debtor manufactured earplugs for many years. A major multinational...more

Ballard Spahr LLP

United States v. Banks: The Third Circuit Weighs in on Calculating Loss Enhancements Under U.S.S.G. § 2B1.1

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Summary - The Third Circuit’s recent opinion in United States v. Banks changes how loss calculations impact sentencing guidelines under U.S.S.G. § 2B1.1, the Federal Sentencing Guidelines that govern the vast majority of...more

McGuireWoods LLP

New Complaint – Damian as Receiver of Today’s Growth Consultant, Inc. v. Core Financial Outsourcing of Chicago, LLC

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On August 31, 2022, Plaintiff Melanie E. Damian, in her capacity as the Court-Appointed Receiver for Today’s Growth Consultant, Inc. d/b/a The Income Store (“TGC”) (the “Receiver”) filed a complaint against Defendant Core...more

Wiley Rein LLP

Court Holds Social Engineering Fraud Does Not Trigger Computer Fraud Coverage

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The United States District Court for the District of Minnesota, applying Minnesota law, has held that an insured’s loss resulting from the insured’s payment of fraudulent invoices received from a bad actor who hacked into the...more

King & Spalding

Texas Bankruptcy Court Rejects Rejects Use of Ponzi-Scheme Presumption in “Ponzi-Like” Fraud Case

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On June 3, 2022, the U.S. Bankruptcy Court for the Northern District of Texas refused to extend the “ponzi-scheme presumption” in connection with an actual intent fraudulent transfer claim because there was no actual ponzi...more

Hogan Lovells

Draft with care – Hong Kong court highlights the importance of proper pleadings

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The Hong Kong Court of First Instance case has denied declaratory and payment order relief sought by a company that had been the victim of cyber fraud because of issues with their pleadings. In the judgment, the Honourable...more

Burr & Forman

Fraudulent Transfers of Property Listed for Sale on the Internet

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Scammers are taking advantage of the active real estate market. Recently, I was contacted by a client who received a call from a lawyer in another state to verify a signature on a deed for the client’s lot being sold;...more

McDermott Will & Emery

Self-Dealing Lawyer Held Jointly and Severally Liable in Trade Secret Misappropriation

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The US Court of Appeals for the Fifth Circuit affirmed a judgment holding a lawyer jointly and severally liable for trade secret misappropriation and fraudulent transfer and enjoining any further use of the trade secrets...more

Rivkin Radler LLP

Insurance Update - February 2022

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Causation, an issue courts often wrestle with when deciding insurance coverage issues, lands the starring role in our February Insurance Update. •A county experienced higher costs due to the opioid crisis. Does its...more

McGuireWoods LLP

New Complaint – Schwartz v. McGregor

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Schwartz v. McGregor was filed in the District Court of Denver County, Colorado on January 10, 2022, seeking relief under Colorado’s Uniform Fraudulent Transfer Act, C.R.S. § 38-8-101-112 (“CUFTA”), including a turnover and...more

Jones Day

Case Update: Second Circuit Breathes New Life Into Madoff Trustee's Efforts to Recover Ponzi Scheme Payments

Jones Day on

In In re Bernard L. Madoff Investment Securities LLC, 12 F.4th 171 (2d Cir. 2021), the U.S. Court of Appeals for the Second Circuit revived litigation filed by the trustee administering the assets of defunct investment firm...more

McGuireWoods LLP

Minnesota Court Untangles Who Owns What Claim in the Fallout of a Ponzi Scheme

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The collapse of a Ponzi scheme usually follows a familiar pattern. When the scheme is exposed, the company created by the schemer—which is usually little more than a sham entity—is placed into receivership or declares...more

Patterson Belknap Webb & Tyler LLP

Appeals Court Rules That a Discharge Injunction Bars a Fraudulent Transfer Claim Based on a Non-Dischargeable Debt

A discharge of debt in bankruptcy “operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of...more

Snell & Wilmer

SBA Adopts New Process for Absolving Fraudulent Loans in Attempt to Provide Certainty to Affected Businesses

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The Paycheck Protection Program (“PPP”) was created on March 27, 2020 as part of the first COVID-19 relief package. Over the past year, Congress appropriated almost $700 billion to the PPP in an effort to provide forgivable...more

Dechert LLP

UK Supreme Court gives boost to creditors: bar on recovery of “reflective loss” relaxed in Sevilleja v Marex Financial Ltd

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The rule against reflective loss bars claims against wrongdoers by shareholders of a company (for instance for the diminution in the value of their shareholding) where the shareholder’s loss is merely reflective of the loss...more

Oberheiden P.C.

Is “Fraud Tourism” The Next Big Thing? How U.S. Government Money Ends Up Abroad

Oberheiden P.C. on

How much of the Paycheck Protection Program (“PPP”) will end up in the hands of bad actors? With several hundreds of billions of dollars in the PPP bucket, fraud, misuse, and misdirection of funds is already being identified...more

Carlton Fields

Is Cryptocurrency Use an Automatic Badge of Fraud?

Carlton Fields on

Creditors and trustees may use state or federal fraudulent transfer law to attempt to recover assets transferred by a debtor. Fraudulent transfers are transfers made with the intent to hinder, delay, or defraud a creditor, or...more

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