Sherman v. Potapov

MEMORANDUM AND ORDER

SARIS, District Judge.

INTRODUCTION

Debtor-appellant Alexander Sherman appeals the final order of the bankruptcy court granting judgment in favor of the creditors-appellees Igor Potapov and B.A. Makden Corporation (collectively “Pota-pov”). The issue on appeal is whether the bankruptcy court properly held that an arbitration award was exempt from discharge as an embezzlement under 11 U.S.C. § 523(a)(4). After oral argument, this Court AFFIRMS the order of the bankruptcy court.

FACTUAL BACKGROUND

1. The Loss

In late 1998, Igor Potapov, Alan Davidson, Alexander Sherman, Irina…