Christian Bros. High School Endowment v. Bayou No Leverage Fund, LLC (In Re Bayou Group, LLC)

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that equity holder’s claims for fraudulent misrepresentation made at the time of the initial investment were properly considered in an insolvency analysis
• “The pre-judgment interest remedy does not provide an independent cause of action that accrues to Appellants’ benefit at the moment of redemption.”
• Unified Commercial Capital and Carrozzella involved the payment of commercially reasonable, contractually guaranteed rates of return
• “Even if the Ponzi scheme presumption were not applicable, the guilty pleas…—which confirm[] the existence of the fraud scheme…—provide[] overwhelming evidence of actual fraudulent intent.”
• “After a debtor makes out a prima facie case of actual or constructive fraudulent conveyance, a transferee nevertheless may avoid rescission of a transfer under Section 548(c)[.]”
• “Cases holding that an exchange of stock constitutes a new investment under securities and tax law ... are not persuasive here, where the purported value of the exchange was itself fictional and fraudulent”

Source: CourtListener parenthetical corpus (CC0).