Case Summary:
Chapter 7 trustee brought action against defendant to recover alleged fraudulent transfer made by debtor. Creditor contended that she had invested some $700,000 in the debtor’s business ventures. The trustee sought to recover $957,000 in transfers. The court found that the trustee did not prove she recovered a $450,000 transfer. As to the remaining balance, the court concluded that she did provide “reasonably equivalent value” in the form of her investments. The fact that the debtor was apparently engaging in a fraudulent scheme did not preclude the defendant from asserting the right to recover her “investments.”

Statute/Rule References:
11 U.S.C. § 548 -- Fraudulent Conveyance

Key Terms:
Fraudulent Conveyance