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SEC Clawback Demand - Dischargeable?
I think 523(a)(19)(B)(iii) makes it non-dischargeable.
The question is will the receiver file a non dischargability adversary to recover 10,000?
Best regards
Larry Webb
California Board of Legal Specialization
Certified Specialist in Bankruptcy Law
P 805.987.1400
F 805.987.2866
C 805.750.2150
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I had a similar, basically identical issue. Long story short, I scheduled the claim; the receiver was noticed and scheduled. The Debtor received discharge. My position is that the receiver was obligated to file an adversarial proceeding (for non-dischargeability). The receiver never took any action; I never heard another word from the receiver .
Tom Tedesco, Esq.
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I have dealt with this issue and it is dischargeable.
-----OrigPS.COM>Sent: Jun 8, 2017 2:08 PM To: cdcbaa@yahoogroups.com Subject: [cdcbaa] SEC Clawback Demand - Dischargeable?
PC was a purchaser of securities that turned out to be a Ponzi scheme. He received a return on his investment (he made a $10,000 profit) prior to the collapse of the scheme. The SEC filed an action resulting in the appointment of a receiver for the entity which set up the fraudulent scheme (PC had no involvement in that). PC is not accused of wrongdoing, but the receiver has demanded that he return his $10,000 profit. I believe this is called a claw-back, whereby "healthy" investors return their profits to the receiver so that a more equitable distribution can be made to all investors. I personally believe that this obligation to reimburse the receiver would be included in a chapter 7 discharge - but I am wondering if anyone else has had a different experience.
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