Judge v. Diamond (In re Victor Dye Works, Inc.)

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

This is an adversary proceeding under the Bankruptcy Act (“Act”) brought by the Receiver against a former officer of the debtor corporation and his wife. The complaint alleges that the defendants committed fraud upon the Receiver, the estate, and the estate’s creditors. The defendants have moved to dismiss the complaint, inter alia, on jurisdictional grounds. For the reasons stated herein, the motion to dismiss will be denied as to defendant Edward Diamond and granted as to defendant Pauline Diamond.

The defendants contend that the complaint should…