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Fraudulent Transfer Action in Bankruptcy
In In re: Schwarzkopf, No. 08-56974, an adversary proceeding seeking to recover for bankrupt estates' benefit approximately $4 million in assets, the court affirmed and reversed in part partial judgment for defendants where 1) the district court did not err in finding that a trust to which defendants transferred certain assets was fraudulent; and 2) the California courts had not extended the prohibition on "reverse-piercing" the corporate veil to the trust context.
As the court wrote: "Robert L. Goodrich, the Chapter 7 trustee for the bankruptcy estates of Alex Michaels, aka Alexis Michaels, aka Alex Schwarzkopf ("Michaels"), and Joanne Louise
Michaels, aka Joanne Louise Schwarzkopf (collectively, "the Debtors"), seeks to recover for the estates' benefit approximately $4 million in assets."