P.F.C. Management Corp. v. Chomat (In Re Chomat)

LARRY L. LESSEN, Bankruptcy Judge. *

OPINION

The issue before the Court is whether the Defendant was acting in a fiduciary capacity for purposes of 11 U.S.C. § 523(a)(4) when a defalcation occurred.

The Plaintiff, P.F.C. Management Corp., is a managing general agent for a pool of insurance companies for the purpose of obtaining reinsurance. Athlone Intermediaries, Inc. is a reinsurance broker. The Defendant, Gustavo I. Chomat, and his wife were the sole shareholders of Athlone, with almost complete control of Athlone.

On August 24, 1990, the Plaintiff filed suit against Athlone in the Circuit…