In the Matter of Zalmen A. Dunn, Bankrupt. Zalmen A. Dunn, Bankrupt-Appellee v. Samuel A. Arutt, Trustee in Bankruptcy

MEDINA, Circuit Judge:

We are called upon to decide the novel question of whether Dr. Zalmen A. Dunn was “engaged in business as * * * an executive of a corporation” under the 1960 amendment to Section 14(c) (3) of the Bankruptcy Act, 11 U.S.C. Section 32(c) (3), at the time he obtained credit for Mid-Island Dental Supply Corp. (“Mid-Island”) by actively participating in a scheme pursuant to which written false statements of its financial condition were made. The referee in bankruptcy found that Dr. Dunn was not so engaged, and the District Court affirmed. We agree with the finding reached…