Bankr. No.:
02-50372
Adv. No.:
02-5016
Chapter:
7
Date of Decision:
September 22, 2004
Issue:
Whether Plaintiff’s pre-petition claim against Defendants-Debtors was nondischargeable under § 523(a)(4) where Defendants-Debtors were corporate officers and directors for Plaintiff, where Plaintiff’s financial status plummeted during their tenure, and where funds held in trust were used contrary to Plaintiff’s by-laws and regulations?
Ruling:
Plaintiff’s pre-petition claim was declared nondischargeable. Defendants-Debtors were fiduciaries of Plaintiff and their defalcation during this fiduciary relationship resulted in Plaintiff’s pre-petition claim against them.
Full Bankruptcy Court Decision:
