United States v. Macagnone (In re Macagnone)

ORDER

BUCKLEW, District Judge.

This cause comes before the Court on the United States of America’s appeal from the United States Bankruptcy Court’s Order on Remand entered January 27, 2000. (B.C. Dkt. 79). Briefs have been filed by both parties, and appellant has also filed a Reply Brief. (B.C. Dkt. 5,6 & 7).

I. Background

In 1982, appellee Frank P. Macagnone (“Macagnone”) formed American Management and Development Company (“AMD”), capitalizing the venture with $500,000.00 of personal funds. (B.C. Dkt. 76 p. 6). He held the title of president and was 50% owner, having given 50% of the company’s…