2nd Circuit

2nd Circuit Connecticut Jun 19, 2018

Colleges Beat Back Another Fraudulent Transfer Suit Aimed at Tuition Payments

Federal student loan proceeds were never the parents’ property and thus could not be recovered by a trustee.

Structured Finance Protects Tuition Payments from Fraudulent Transfer Suits

Children were the initial transferees of tuition payments, thus giving schools the ‘good faith’ defense to fraudulent transfers.

Madoff Opinions Ease Pleading Requirements in Suits Against Subsequent Transferees

Bankruptcy Judge Vyskocil holds that alter ego need not be alleged to recover from a corporation’s sole shareholder as the beneficiary of a fraudulent transfer.