Vine v. Lotto (In Re Lotto)

DECISION

D. E. IHLENFELDT, Bankruptcy Judge.

Plaintiffs have asked the court to declare their claim against the debtor in the amount of $8000 to be nondischargeable, pursuant to § 523(a)(4) of the Bankruptcy Code. 1 Trial was held on December 3, 1981, 2 and extensive briefs have been filed by the parties. The issue involves an interpretation of Wis.Stats. s. 779.02(5), the Wisconsin “Theft by Contractor” statute, and the facts are substantially not in dispute.

In late August, 1980, in response to a newspaper ad, Randy Vine visited a model home where he met the debtor, Michael Lotto. Lotto…