cdcbaa Central District Consumer Bankruptcy Attorney Association
Bankruptcy and Probate, Trusts and Conservatorships Crossover
October 13, 2012
Speakers:
Patrick Green, Esq.: The Law Office of Fitzgerald and Green
Mark T. Jessee, Esq.: The Law Offices of Mark T. Jessee
In Malley v. Agin, — F.3d —(1st Cir. Aug. 2012), the debtor hid property from the trustee, here cash proceeds from the sale of the home. By the time the trustee figured it out, the funds were gone. The bankruptcy court permitted a surcharge under section 105 against the debtor’s exempt truck. The debtor argued “the ostensible inviolability of exempt property under the terms of 11 U.S.C. § 522(c), in its provision that ‘[u]nless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose before [its] commencement.’” “But we think [the debtor’s] point begs the question. Should [the debtor]’s interest in the truck be recognized as ‘exempted under this section’ when its exemption would consummate a fraud on creditors by giving the debtor a greater exemption in fact than the code entitles him to claim in law?”
“Accordingly, we endorse the Ninth Circuit’s conclusion in Latman v. Burdette, 366 F.3d 774 (9th Cir.2004), that a debtor’s fraudulent concealment of non-exempt assets is an exceptional circumstance in which an offsetting surcharge against otherwise exempt property interests is reasonably necessary ‘both to protect the integrity of the bankruptcy process and to ensure that a debtor exempts an amount no greater than the Bankruptcy Code [permits].’”
Dear new(er) Colleagues!
There are 2 upcoming Chapter 7 “Nuts & Bolts” Trainings coming up in the month of November.
Please save these respective dates. I shall list on the listserv when each flyer becomes available.
The dates are:
SANTA ANA: DATE: Thursday, November 15, 2012 OC Ch7 Nuts Bolts
REGISTRATION: 5:30 PM
PROGRAM: 6:00-9:15 PM
LOCATION: Orange County Bar Association 4685 MacArthur Court, 3rd Floor
Newport Beach 92660
LOS ANGELES: DATE: Thursday, November 29, 2012
REGISTRATION: 8:30 AM
PROGRAM: 9:00-12:15 PM
LOCATION: Roybal Federal Building 255 E. Temple Street, 12th Floor Los Angeles, CA 90012
KEITH HIGGINBOTHAM
2012 cdcbaa President
October 5, 2012
Dear constituency list members of the Insolvency Law Committee, the following is a book review that may be of interest to you:
The Ponzi Book: A Legal Resource for Unraveling Ponzi Schemes
Authors: Kathy Bazoian Phelps,[1] Hon. Steven Rhodes[2] Published by LexisNexis (2012) For more information: www.theponzibook.com
On three days in August, 2012, the SEC brought three separate fraud charges against multi-million dollar Ponzi schemes — one alleged to be an online $600 million scheme, and another alleged to involve a former collegiate football coach and hall of fame inductee. The SEC actions were yet another reminder that while the “hook” of the schemes vary, the lure of supposed low-risk, high-return investments has led to a proliferation of Ponzi scheme fraud during the last decade. Multi-million dollar Ponzi schemes continue to generate new litigation in the wake of the massive Bernie Madoff scandal.
The Ponzi Book is an 800-page reference guide for unraveling the complicated and evolving legal issues arising from Ponzi schemes in bankruptcy, receiverships and in other third-party litigation. The book is a thorough, well-organized, and well-written reference for lawyers and other professionals confronting Ponzi scheme issues.[3] It addresses issues based on federal law, with detail about how different circuits approach cases and, by necessity, with less emphasis on state law tort claims.
Federal Bar Association Young Lawyers Division — Brown Bag Lunch with the Honorable Michael Fitzgerald, United States District Judge, and the Honorable Carla Woehrle, United States Magistrate Judge
Bring your lunch and join Judge Fitzgerald and Judge Woehrle for an exciting and informative introduction to federal practice in the Central District of California.
November 1, 2012 Time: 12:00 p.m. – 1:00 p.m.
No charge to attend, but space is limited!
Federal Bar Association – Los Angeles Chapter
210 N. Glenoaks Blvd. Ste C
Burbank, CA 91502
***FYI Professor Hayes’ son Cassidy Hunter Hayes is going to clerk for Judge Fitzgerald next year!
TO ALL USERS RE: CM/ECF System Unavailable Due to Updates to the PACER Router on Monday, October 8, 2012, 9:00 a.m. to 11:00 a.m.
Due to this update, the following systems will be unavailable:
CM/ECF Live System, CM/ECF training (not available to complete homework assignment), LOU, PACER, VCIS
We apologize for the inconvenience this may cause.
ECF Help Desk
(213) 894-2365
Governor Brown signed three significant foreclosure bills into law:
AB 2610 (Skinner) – Extends the federal 90-day notice protection to all tenants in foreclosed properties, not just bona fide tenants. The bill also enacts the PTFA’s lease protections into state law but places the burden of proof on who qualifies for lease protections on the landlord. The newly enacted law also reforms the eviction process to better ensure that foreclosed tenants can assert their rights in post-foreclosure eviction actions.
SB 1191 (Simitian) – Requires landlords in 1-4 unit properties to disclose a notice of default (foreclosure) to prospective renters. Disclosure must be made in the six most frequently used languages in California. If the landlord fails to make the necessary disclosure, the tenant may ether (1) void the lease and recover all pre-paid rent plus additional damages or (2) elect to remain in the home and deduct one month’s rent from future rent obligations.
AB 1599 (Feuer) – Requires foreclosure notices (notice of default and notice of trustee sale) to include summaries in the six most frequently used languages in California listed in Civil Code 1632. This law will take effect on April 1, 2013 or 90 days after the Department of Consumer Affairs issues the translations, whichever is later.
The text of the bills is linked above. The tenant bills will take effect on January 1, 2013.
Best,
Magdalena Reyes Bordeaux
Senior Staff Attorney
Public Counsel
mbordeaux@publiccounsel.org
This is a really useful newsletter from the U.S. Trustee’s Office in the Central District. You can access it here.
I’m heading for the Earle Hagen Charity Golf Tournament today at Bremar Country Club. Couldn’t find my clubs. They were in the trunk of my car where they have been since last year. We moved the tournament from beginning of Sept to beginning of Oct so it wouldn’t be so hot. Expecting 100+ today. I’ll post some pictures tomorrow. Hope to see you there.
Hello Friends and Colleagues!
We have three excellent speakers for our October 2nd evening seminar on malpractice as it applies to bankruptcy. THE PRACTICAL ETHICS OF BANKRUPTCY PRACTICE. For those of you who do not know Rob Sall, that is probably a good thing, since Rob’s practice focuses on plaintiff malpractice cases. Scott Garner defends malpractice cases for lawyers. Most of you likely know Lei Lei. Lei Lei will tie everything together and put it all into the bankruptcy context.
I think the seminar will be an enjoyable Ethics CLE where you will learn some practical tips. I hope to see you all on October 2nd.
David M. Goodrich, Esq.
Goodrich Law Corporation
