Field v. Hinahara

ORDER (1) RULING ON QUESTION OF LAW REGARDING THE “FRAUD ON THE PARTNERSHIP” EXCEPTION, AND (2) REQUESTING COMMENT ON FORM OF QUESTION TO BE CERTIFIED TO THE HAWAII SUPREME COURT

J. MICHAEL SEABRIGHT, District Judge.

I. INTRODUCTION

This Order rules on a threshold issue of law in this adversary bankruptcy proceeding arising out of a Ponzi scheme perpetrated by Lloyd Kimura (“Kimura”).1 Plaintiff bankruptcy trustee Dane S. Field (“Trustee”), seeks to avoid nearly a million dollars of fraudulent transfers made to Defendants Dennis and Myra Hinahara (the “Hinaharas”) by Debtor Maui Industrial Loan…