In re Granger (Ch. 7 Case No. 06-52502, Adv. No. 07-05037)
The plaintiffs contended that the defendant-debtor, through fraud and false financial statements, induced them to invest in a business. The debtor was a shareholder, the president of, and managed the day to day operations of the business. The business failed. The plaintiffs contended that they suffered damages due to the defendant's fraud and that their claims were nondischargeable in bankruptcy under ยง 523(a)(2). The court held that the debtor had knowingly made false representations and published false financial statements. The court held that the damages suffered by the plaintiffs were nondischargeable in bankruptcy.
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Wednesday, July 30, 2008