Bargfrede v. St. Edward's Catholic Church

Bankruptcy Trustee Michael Dietz (Trustee) appeals the district court’s affirmance of the bankruptcy court’s entry of summary judgment in favor of St. Edward’s Catholic Church and the Diocese of Dubuque (Church) in his proceeding to recover three pre-filing transfers. We reverse in part and remand.

In 1989, Pamela Bargfrede pleaded guilty to felony theft after she embezzled over $200,000 from the Church at which she was employed as a bookkeeper. The Church was awarded a civil judgment, which was satisfied by agreement after the three separate payments which are at issue in this matter were…