Gold v. Sovereign Bank (In Re Taneja)

MEMORANDUM OPINION

STEPHEN S. MITCHELL, Bankruptcy Judge.

In these actions brought by a chapter 11 trustee to recover payments allegedly made in furtherance of a Ponzi scheme, the defendants have filed motions to dismiss the counts grounded on Virginia’s fraudulent conveyance statute for failure to state a claim for relief. Together, the challenged counts seek avoidance and recovery of $47.8 million in payments made to the defendants — who provided “warehouse” funding for mortgage loans originated by one of the jointly-administered debtors — as fraudulent conveyances under § 55-80, Code of…