United States v. Borock (In Re Ruggeri Electrical Contracting, Inc.)

OPINION REGARDING CROSS MOTIONS FOR SUMMARY JUDGMENT ON COUNTER-CLAIM

STEVEN W. RHODES, Chief Judge.

The question presented, is whether a pre-petition levy by the Internal Revenue Service on funds in the debtor’s bank account constitutes a transfer of an interest of the debtor in property and is therefore avoidable as a preference under 11 U.S.C. § 547(b). The government argues the funds in the debtor’s bank account were held in trust for its benefit. The trustee argues the funds were property of the debtor. The Court concludes that no material factual issues exist; that the funds were not held…