Spencer v. Newton

OPINION

CAFFREY, Chief Judge.

I

This is a civil action brought by plaintiff Carlton W. Spencer, as Trustee in Bank*369ruptcy of Investment Fund, Inc. (IFI), a Massachusetts corporation. The following basic facts are agreed upon by all parties. On December 9, 1970, an involuntary petition in bankruptcy was filed against IFI, and the corporation was adjudicated a bankrupt on February 11, 1971. In the period immediately before its demise, IFI’s primary business was making loans to nursing homes. Defendant Caryl Newton, the widow of Arnold Goodman, owned 250 of the 1,710 outstanding shares of IFI stock…