Preference Law Meets the Original Ponzi

Are pre-petition refunds to investors made by a person operating a Ponzi scheme avoidable as preferences? Yes, says the Supreme Court.

Unlock This Article

To get started, please let us know which of these best fits your current position:

Please sign in to continue reading this content.
Hayes Jury
Senior Counsel, RHM Law, LLP (Los Angeles, CA)

M. Jonathan Hayes has practiced consumer bankruptcy law primarily for the past 42 years in Southern California. He recently completed a two-year sabbatical as the BAP Law Clerk first for Judge Laura Taylor in San Diego and then for Judge William Lafferty in Oakland. He is now Senior Counsel to the bankruptcy firm of RHM Law, LLP. Jon has been an Adjunct Professor of Law at the University of West Los Angeles School of Law for the past 33 years where he has taught Bankruptcy, Business Associations and other subjects. Jon was a member of the California State Bar Board of Legal Specialization, Bankruptcy Law Advisory Commission, 2010 to 2018. He was Vice-Chairman for the year 2016-2017 and Chairman for the year 2017-2018. He was President of the Central District Consumer Bankruptcy Attorney’s Assn (“cdcbaa”), 2013 and 2014, and is a member of the Board of Directors 2008 to present. He was a Lawyer Representative to the Central District Judicial Conference, 2014 to 2019. Today he has joined with Hon. Meredith Jury (Ret.) to form a bankruptcy appellate “dream team” with six other bankruptcy attorneys throughout the 9th Circuit to help consumer attorneys with their bankruptcy appeals. Jon has written four books entitled, “A Summary of Chapter 13” published in November 2019; “A Summary of Bankruptcy Law, Third Edition” published in December, 2016; “Bankruptcy Jurisprudence from the Supreme Court, Second Edition” published in 2016; and “Melvyn ‘Deacon’ Jones: My 40 years with the Blues Legends,” published in 2004. All are available on Amazon.com. You can reach Jon at [email protected].

Related Articles

davidjacob
July 28, 2024
“Just call me the third-party release clause groupie. . . . After another security check and metal detector, we were in and I had a seat where I could see all of the justices in their glory!”
Copy of Hildebrand-2016
April 17, 2022
In re Galloway, 2022 WL 1017951 (Bankr. N.D. Ill. April 5, 2022) A Chapter 13 trustee’s final audit and notice of completion of payments is not necessary or a precondition to the court granting a discharge to a debtor who has satisfied the requirements of § 1328. (Judge Thorne) Case Summary Tara Galloway filed a Chapter 13 petition in May...
Members
barta
November 12, 2023
It is with sadness that we announce the death of retired U.S. Bankruptcy Judge, James J. Barta, Sr. on Tuesday, November 7, 2023. Judge Barta served as a Bankruptcy Referee in the Eastern District of Missouri beginning in 1978, then a Bankruptcy Judge from 1986 through 2006, including three stints as Chief Judge. Before serving with the Court, Judge Barta...
regina26
January 11, 2026
On November 24, 2025, the United States Postal Service quietly revised its policy on when mail is postmarked — a change that could have big implications for anyone who relies on postmarks to prove they mailed something on a specific date.
Members
moran_cathy
December 3, 2023
“We’re confronted with a dilemma: if we pay practitioners fairly,we price ourselves out of reach of the very individuals we hope to help.”
Members
Copy of Hildebrand-2016
July 31, 2022
Chapter 13 debtor’s profligate, pre-petition spending and post-petition lack of candor, demonstrated that the plan was not proposed in good faith and the petition was not filed in good faith. (Frank) In re Ames, 2022 WL 2195469 (Bankr. E.D. Pa. June 17, 2022) Case Summary In April of 2018, after 10 years of marriage, Guy Ames initiated a divorce complaint...
Members
leffler4
September 14, 2025
“Verified as reported.” Three words that kill your client’s dispute—and fuel your next case.
Members
Scott Waterman
March 24, 2024
An ordinary title for a very NON-ordinary article! A computer program which will accurately predict whether a borrower will default and relief extended based on the data. WHAAAT???
January 19, 2020
January 9, 2020, the Bureau filed suit against several companies and individuals involved in offering student loan debt-relief services for allegedly obtaining consumer reports illegally, charging unlawful advance fees, and engaging in deceptive conduct. The Bureau’s action is against a mortgage lender called Chou Team Realty, LLC, which does business as Monster Loans (Monster Loans); an allegedly sham mortgage brokerage...
September 15, 2019
By Cathy Moran, Esq. (Redwood City, CA) Mention tax calculations to a bankruptcy attorney and 7 out of 10 freeze on the spot. I'm not a tax attorney, they retort. That's right, but, if you are a bankruptcy attorney, that doesn't relieve you from knowing enough tax to get the means test right. Not to mention not giving up your...
Members

Looking to Become a Member?

ConsiderChapter13.org offers a forum to advance continuing education of consumer bankruptcy via access to insightful articles, informative webinars, and the latest industry news. Join now to benefit from expert resources and stay informed.

Webinars

These informative sessions are led by industry experts and cover a range of consumer bankruptcy topics.

Member Articles

Written by industry experts, these articles provide in-depth analysis and practical guidance on consumer bankruptcy topics.

Industry News

The Academy is the go-to source for the latest news and analysis in the Chapter 13 bankruptcy industry.

To get started, please let us know which of these best fits your current position: