Gowan v. Westford Asset Management LLC (In Re Dreier LLP)

MEMORANDUM DECISION GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS AMENDED COMPLAINT

STUART M. BERNSTEIN, Bankruptcy Judge.

The plaintiff, the chapter 11 trustee of the estate of Dreier LLP (“Dreier LLP”), commenced this adversary proceeding to avoid and recover fraudulent transfers aggregating $137,648,574. The defendants (collectively “Westford”) are an affiliated group of hedge funds (and their agents and managers) that invested in Marc S. Dreier’s (“Marc”) self-confessed criminal Ponzi scheme. The plaintiff also seeks to equitably subordinate the defendants’ claims and impose…