The U.S. Court Appeals for the Seventh Circuit held on Aug. 26, 2013, that an investment manager's “failure to keep client funds properly segregated” and subsequent pledge of those funds “to secure an overnight loan” to stay in business may have constituted: 1) a fraudulent transfer to the lender; and 2) grounds for equitably subordinating the lender's $312 million secured claim.
Seventh Circuit Reverses 'Inconsistent' District Court Fraudulent Transfer and Equitable Subordination Ruling
An in-depth analysis of the Seventh Circuit's ruling in <I>In re Sentinel Management Group, Inc.</I>
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