Trunnels v. Schmidt (In re Schmidt)

ORDER

RALPH B. KIRSCHER, Bankruptcy Judge.

In this adversary proceeding the Plaintiff, Patricia Trunnels (“Patricia”), seeks an exception to the discharge of the Defendants/Debtors William M. Schmidt (“Bill”) and Gareth G. Schmidt (“Gareth”), in the sum of $714,014.85 for fraud or defalcation under 11 U.S.C. § 523(a)(4). Gareth served as Trustee of the Gagle Family Trust (the “Trust”), a trust established by Roy H. and Myrtle Gagle, the parents of Patricia, Gareth and Janet Clifton, who are sisters. For the reasons set forth below, Judgment is entered for Gareth and Bill based on the Trust…