Phi Air Medical, L.L.C. v. Holskey (In re Holskey)

(Bankr. W.D. Ky. Feb. 16, 2016)

The bankruptcy court finds the debt non-dischargeable under § 523(a)(4) and (6). The debtor’s minor son was transported by helicopter to a hospital after an injury. The transport company billed the debtor’s insurance company, and the insurance company sent the reimbursement check to the debtor for transfer to the transport company. The debtor used the funds for other purposes. The court finds the debtor’s explanations inconsistent and holds that the facts support a finding that the debt is based on embezzlement and/or larceny and that the debtor caused a willful and malicious injury to the creditor. Opinion below.

2016-02-16 – In re holskey

Author: Matt Lindblom

Consolidated Brokers Corporation, LLC v. Buchanan (In re Buchanan)

(Bankr. S.D. Ind. Mar. 2, 2015)

The bankruptcy court enters a nondischargeability judgment in favor of the creditor. The court first holds that a prior state court judgment does not have preclusive effect as to nondischargeability under § 523(a)(4) and (6), in part because it was entered as a discovery sanction rather than on the merits. The court ultimately holds that debts arising from converted checks and larceny committed with respect to a loan check are nondischargeable, while other debts were dischargeable. Attorney fees arising out of the debtor’s embezzlement and larceny were also nondischargeable. Opinion below.

2015-03-02 – consolidated brokers v buchanan

Author: Matt Lindblom