Matter of Rutkowski

DECISION ON COMPLAINT TO DETERMINE DISCHARGEABILITY PURSUANT TO § 17a(2)

HOWARD SCHWARTZBERG, Bankruptcy Judge.

Plaintiffs, Nicholas Tucci and Minnie Tucci, have filed a complaint against the bankrupt pursuant to § 17a(2) of the Bankruptcy Act. The plaintiffs allege that the bankrupt knowingly, willfully, fraudulently and wrongfully converted to his own benefit a mortgage assigned to him by the plaintiffs with the restriction that the bankrupt was not to record the assignment and that the bankrupt with knowledge of the restrictions subsequently recorded and sold the assigned mortgage, thereby…