In re Donnan (Ch. 7 Case No. 11-31038, Adv. No. 11-3088)

Creditor's deceased husband had invested in a liquidation business (GLC) but later lost the money invested when GLC turned out to be a Ponzi scheme.  Creditor contended that debtor had solicited her deceased husband to invest while knowing that GLC was a Ponzi scheme and that claim was nondischargeable under 11 U.S.C. Section 523(a)(2)(A), (4) and (6).  Court found that debtor did not know about Ponzi scheme, that there was no intent to deceive and the claim was dischargeable in bankruptcy.

Thursday, August 1, 2013