REID COLLINS HELPS WIN SIGNIFICANT VICTORY IN THE STANFORD RECEIVERSHIP
On December 20, 2019, the Texas Supreme Court addressed a certified question—at the request of the Fifth Circuit—related to the $7 billion Ponzi scheme perpetrated by Allen Stanford and Stanford International Bank. Specifically, the Court ruled that a transferee on inquiry notice of a fraudulent transfer may not satisfy a good-faith defense under the Texas Uniform Fraudulent Transfer Act, unless the transferee conducted a diligent investigation. Reid Collins had filed an amicus brief seeking such a ruling on behalf of the National Association of Bankruptcy Trustees. The ruling is a significant victory for trustees, receivers, and other plaintiffs in fraudulent transfer litigation, not only in Texas, but also in other jurisdictions around the country.
See opinion here.
Prior results do not guarantee a similar outcome.