Merrill v. Abbott (In Re Independent Clearing House Co.)

How courts have described this case

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

• payments to investors in a “Ponzi” scheme could not constitute transfers in the ordinary course of business and made according to ordinary business terms
• “the [preference] defendants’ claims are not allowable pursuant to section 502(d) until after their fictitious profits and preferences have been surrendered to the estate.”
• “Property of the debtor includes preferences and fraudulent conveyances recovered by the trustee”
• “unlike an ordinary trust, the object of the ... business trust is not to hold and conserve particular property, but to provide a medium for the conduct of business and the sharing of gains”
• defining a Ponzi scheme and describing its history

Source: CourtListener parenthetical corpus (CC0).