Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Expansive Equitable Powers of Bankruptcy Courts Under Section 510(C)
In a recent decision in the case of In re National Realty Investment Advisors, Case No. 22-14539, the U.S. Bankruptcy Court for the District of New Jersey subordinated a 502(h) claim to prevent the claimant from being paid in full prior to investors defrauded by the debtors’ pre-petition operation of a Ponzi scheme. In its decision, the court maintained that the equitable powers of bankruptcy courts were sufficiently broad to subordinate a claim (even a claim that arose under 502(h)) on equitable grounds under Section 510(c) and that there is nothing in the Bankruptcy Code that prevents a court from so doing.
Background
In June 2022, New Jersey-based real-estate developer National Realty Investment Advisors (the NRIA) along with its subsidiaries (collectively, the debtors) filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey. At the time of filing, the debtors owned several properties, many of which were incomplete and still in their planning phase. Months after the petition date, NRIA’s shadow CEO, Nicholas Salzano, along with another top officer at the company, were arrested and charged for their roles in, among other things, orchestrating a plan to defraud more than 2,000 investors in a $658 million Ponzi scheme. Salzano was later convicted and sentenced to 12 years in prison.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.