Speir v. Westmoreland

1. A discharge in bankruptcy does not release a bankrupt from “liabilities for obtaining property by false pretenses.” Bankruptcy act, § 17; 11 U.S.C.A., § 35. Where the principal stockholders of an insolvent corporation induced another to exchange valuable realty for capital stock in the corporation, by false and fraudulent representations as to the solvency of the corporation, and as to the purposes incident to corporate use to which the property was to be put, and by personally agreeing to reimburse the owner in the amount of the purchase-price of the property if he should so desire within…