The Collapse of Financial Fraud: Measuring Bankruptcy Avoidance Actions

40 Pages Posted: 13 Jul 2014

See all articles by Jessica Gabel Cino

Jessica Gabel Cino

Georgia State University - College of Law

Isaac Asher

Georgia State University, School of Law, Students

Mary Byington

Georgia State University, School of Law, Students

Date Written: 2012

Abstract

This Article analyzes bankruptcy avoidance actions in the context of Ponzi schemes and the competing interests of the government and creditors. Forfeiture statutes are helpful for collecting assets in Ponzi schemes. Once fraud enters the picture, the government has the long arm of the law on its side and it can, almost immediately begin to seize assets related to the Ponzi scheme. But bankruptcy avoidance actions can also marshal and distribute property of the estate. Both sets of rules can in many instances create a fair division between all creditors and victims. The two sides may never agree on who should win, but at lease there is recognition between the two cams that more can be done to reconcile the approach of two very different systems in the same case.

Keywords: Ponzi scheme, bankruptcy, avoidance actions, forfeiture, asset distribution, bankruptcy estate

Suggested Citation

Cino, Jessica Gabel and Asher, Isaac and Byington, Mary, The Collapse of Financial Fraud: Measuring Bankruptcy Avoidance Actions (2012). 42 Golden Gate University Law Review 587 (2012)., Available at SSRN: https://ssrn.com/abstract=2465188

Jessica Gabel Cino (Contact Author)

Georgia State University - College of Law ( email )

P.O. Box 4037
Atlanta, GA 30302-4037
United States

Isaac Asher

Georgia State University, School of Law, Students

Atlanta, GA
United States

Mary Byington

Georgia State University, School of Law, Students

Atlanta, GA
United States

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