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Fraud
This Adversary case filed in a Chapter 13 Bankruptcy relates to promissory note fraud between the debtor and creditor pursuant to 523(a).
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In this carefully written Opinion Judge Schmetterer evaluates the arguments in a Motion to Dismiss an Adversary Complaint based on fraudulent behavior. Beyond its examination of Bankruptcy Fraud, this Opinion is notable for its recitation of the ways this former Attorney conned his Client out of money.
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This Opinion from Northern District of Illinois Bankruptcy Judge Jack Schmetterer showcases the interplay of Federal and State law in a complex commercial scenario. It also displays the characteristic desire of Federal Courts to keep things clear and simple: which is unfortunately the opposite of how convoluted factual and legal situations play out in State...
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While Bernie Madoff serves out his 150-year sentence, the fight over how to satisfy his creditors rages on. Now, an infamous 2011 ruling by the Supreme Court limiting the power of bankruptcy courts may have a bizarre and unintended affect: many of the investors that recovered money when Madoff was first exposed may lose it...
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The 7th Circuit seemed to be balancing the inflexible Sentencing Guidelines imposed by Congress with the need to tailor the outcome to the facts. But it was the Defendants' own actions that saved them, so overall the rules remain as strict as ever. If you can't do the time, don't do the crime.
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Fraud on the Court is defined as that kind of fraud that could not be discovered even with diligent inquiry, such as when an Attorney commits perjury or forgery, falsifies documents, tampers with a jury, or bribes a judge.
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